Larry Fink, CEO of BlackRock, has responded to the recent buzz surrounding the firm’s pending application for a Bitcoin exchange-traded fund (ETF). This comes in the wake of a turbulent morning triggered by an erroneous report from Cointelegraph claiming that the Securities and Exchange Commission (SEC) had approved BlackRock’s ETF application. The news outlet promptly retracted the story after publication.
As per a report by Fox Business, which claimed to be the first to confirm the inaccuracy of the Cointelegraph report, disseminating the details on X, Fink acknowledged the heightened interest in cryptocurrency but refrained from discussing specific details or confirming the status of the ETF application. Speaking on “The Claman Countdown” on Monday afternoon, he stated, “I can’t talk about the specifics of anything; I think it’s just an example of the pent-up interest in crypto. We are hearing from clients around the world about the need for crypto.”
Following the initial report, Bitcoin experienced a nearly 10% rally before settling back to the $28,000 level. Fink suggested that the surge in Bitcoin’s price was not solely due to the rumor but also attributed it to a “flight to quality” amid global concerns such as the Israeli war and issues of global terrorism.
BlackRock, managing approximately $9 trillion in assets, filed for a spot Bitcoin ETF with the SEC in June. If approved, the iShares Bitcoin Trust would utilize Coinbase Custody as its custodian, providing investors with exposure to the leading cryptocurrency without direct ownership.
BlackRock joins a growing list of firms facing SEC rejections for similar ETF applications, including Grayscale, currently engaged in a legal battle with the SEC over the denial. Other entities, such as Fidelity and CBOE, have also faced regulatory setbacks.
Fink emphasized BlackRock’s aim to democratize crypto and reduce costs for investors. The CEO stated during a July interview on “The Claman Countdown,” “What we’re trying to do with crypto is make it more democratized with all of crypto and making it much cheaper for investors.”
