Clients Are Talking about ‘Need for Crypto’, Says Blackrock CEO Larry Fink

The Chief Executive Officer of asset management giant BlackRock Inc (NYSE: BLK) recently said there is “the need for crypto” among the company’s many clients. Fink revealed this in a Monday interview on Fox Business.

BlackRock CEO Believes Clients Need Crypto

Fink spoke only a few hours after a rumor that the United States Securities and Exchange Commission (SEC) approved BlackRock Inc’s iShares spot Bitcoin Exchange Traded Fund (ETF). In response to the news, the price of Bitcoin climbed from about $27,900 to $30,000. Referencing the news and Bitcoin rally, Fink said:

“Its an example of the pent-up interest in crypto. We are hearing from clients around the world about the need for crypto … I think the rally today is about a flight to quality, with all the issues around the Israeli war now, global terrorism.”

Fink has previously spoken in support of Bitcoin. In a July Fox Business interview, Fink said Bitcoin could revolutionize the financial system. This was an interesting turnaround from the CEO’s previous aversion to cryptocurrencies. Fink had expressed opposition to crypto, stating that it can easily be used for illegal activities.

Currently, the SEC is reviewing several applications for spot Bitcoin ETFs, including one from Blackrock. In June, BlackRock submitted an application to the SEC, naming crypto exchange Coinbase (NASDAQ: COIN) as the custodian.

The SEC has yet to approve any spot Bitcoin ETF application. Last month, the Commission delayed a decision on several proposals, including those from BlackRock, Valkyrie, VanEck, Bitwise, and WisdomTree.

SEC May Approve Spot Bitcoin ETF Soon

Bloomberg analysts James Seyffart and Eric Balchunas believe that there is a 95% chance of the SEC approving a spot Bitcoin ETF this year. The duo had previously put the likelihood at 65%, considering Grayscale’s victory over the SEC. In August, the US Court of Appeals for the D.C. Circuit ruled in Grayscale’s favor regarding converting its Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin ETF. In response to the ruling, the price of Bitcoin jumped over 7%.

JPMorgan analysts led by Nikolaos Panigirtzoglou have also predicted that the SEC will likely approve a spot Bitcoin ETF following Grayscale’s victory. The court had ruled that there is no justification to approve a futures-based Bitcoin ETF while rejecting spot ETFs. According to JPMorgan, continuous rejections of Grayscale’s proposal to convert its GBTC means that the SEC would have to “retroactively withdraw its previous approvals of futures-based Bitcoin ETFs”. The analysts noted that doing this would mean grave consequences for the SEC and the crypto market.

Galaxy Digital CEO Mike Novogratz also believes the SEC will soon approve a spot Bitcoin ETF. According to the billionaire CEO, the approval will come by February at the latest. During a Galaxy Digital earnings call for Q2 in August, Novogratz said the approval will happen in “four to six months”.

Galaxy Digital also collaborated with Invesco and submitted an upgraded application to the SEC in June.

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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.