Blackrock CEO Says Bitcoin Pump Shows a “Flight to Quality”

Larry Fink, the CEO of BlackRock, the world’s largest asset manager with $9.4 trillion in assets, shared his thoughts on the recent increase in the price of Bitcoin following the false reports of the BTC ETF approval.

The Blackrock CEO spoke to Fox Business on Monday, within hours of a rollercoaster ride that saw the price of Bitcoin and other cryptocurrencies spike and drop sharply.

The sudden rise and decline was primarily caused by a false report by the crypto media Cointelegraph, which claimed that the United States Securities and Exchange Commission (SEC) had approved Blackrock’s spot Bitcoin ETF application. Bitcoin briefly traded above $30,000 before dropping back to the $28,000 mark following the report.

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However, Blackrock immediately debunked the rumors, confirming that its application, like that of competitors, was still under review. Further, Blackrock’s CEO Larry accepted an interview with Fox Business to discuss the recent development. Fink shared the narrative that “some of this rally is way beyond the [Bitcoin ETF approval] rumor.”

Flight to Quality and Growing Demand for Crypto

In the interview, Fink emphasized that the recent crypto market rally is “about a flight to quality.” Specifically, the BlackRock CEO cited the escalating war in Israel and the rise in global terrorism as reasons investors are fleeing into assets like treasuries, gold, and crypto. He expressed conviction that crypto can play the role of a flight to quality asset class.

Additionally, Larry Fink cited the recent market rally as an “example of the pent-up interest in crypto.” He indicated that BlackRock clients around the world are demanding crypto exposure, hence the firm’s move to satisfy such demand. 

As The Crypto Basic previously reported, BlackRock has already launched a trust offering clients direct exposure to Bitcoin. The firm also remains keen on securing approval for a spot Bitcoin ETF.

Meanwhile, the BlackRock CEO’s latest comments about cryptocurrencies reflect his recently changed stance on Bitcoin and other digital assets. In July, Larry Fink called Bitcoin an international asset and labeled it digital gold.