BlackRock CEO Larry Fink said there is growing global interest in cryptocurrency and that a bitcoin (BTC) exchange-traded fund (ETF) could lower investment costs.
In a new interview with CNBC's "Squawk on the Street," Fink said just as gold ETFs lowered the costs of investing in the precious metal, a Bitcoin ETF would likely do the same for the crypto king.
He says a Bitcoin ETF would also open up the King of Crypto to a wider pool of investors, as global demand for crypto investing is on the rise.
According to Fink, one of the reasons for the growing interest is the belief that crypto can act as a hedge against the depreciation of fiat currencies like the US dollar.
“We have a responsibility to democratize investment. And we did a great job. And the role of ETFs in the world is transforming investing. And I think we are only at the beginning...
And now, with crypto, the idea of democratizing this role. The current cost of transactions is quite high. We are talking about points, not decimal points. And so that's also a big point. Over the past five years we've had more and more global investors asking us about the role of crypto, and like I said, I think a lot of crypto is going to be…it's an international asset . It has differentiating value compared to other asset classes, but more importantly, because it is so international, it will transcend any currency and currency valuation.
If you just look at the value of our dollar, how it has depreciated over the past two months, and how much it has depreciated over the past five years, an international crypto product can truly transcend that. And that's why we believe there are great opportunities and that's why we're seeing more and more interest. And this interest is widespread, all over the world.
BlackRock applied for a spot Bitcoin ETF on June 15 with the U.S. Securities and Exchange Commission (SEC), which has yet to approve one.
"We're working with our regulators because we want, like in any new market, if BlackRock's name is in there, we're going to make sure it's safe and sound and protected."
Bitcoin is trading for $31,236 at the time of writing, up 1.2% in the past 24 hours.
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