Larry Fink, CEO of BlackRock, believes the recent surge in Bitcoin’s (BTC) price can be linked to the growing interest and demand for digital currencies.
His comments came as a reaction to an inaccurate news story about the approval of a spot ETF, which briefly drove Bitcoin’s price upwards.
While Fink didn’t touch upon BlackRock’s own pursuit of a Bitcoin spot ETF, he did note that global clients have been vocal about their crypto requirements.
“The current rally isn’t just about speculation or rumors. I see it as a move towards a reliable asset, especially considering the present concerns about the conflict in Israel and worldwide terrorism,” Fink shared during a Fox Business interview.
“I perceive a trend where individuals are seeking refuge in dependable assets, be it Treasuries, gold, or even cryptocurrencies, depending on one’s perspective. I’m convinced that crypto is assuming such a role as a safe haven,” observed Fink.
Bitcoin’s value skyrocketed to almost $30,000 on Monday, prompted by a mistaken report suggesting that the BlackRock ETF had secured the green light from the Securities and Exchange Commission (SEC).
While the cryptocurrency’s value dipped after the inaccuracy of the report was highlighted, Bitcoin did sustain a portion of its earlier gains.
As of this article’s composition, the top cryptocurrency, when gauged by market cap, is priced at $28,200, marking a 1% rise in the last 24 hours, as per CoinGecko data.
Bitcoin’s performance reflects a 7.4% hike over the preceding month and a commendable year-over-year increase of 47.4%. This upward trajectory has, in part, been fueled by the expectancy linked to the green light for a spot ETF.
Analysts Believe SEC Will Have to Greenlight Bitcoin ETF
In September, analysts from JPMorgan, led by Nikolaos Panigirtzoglou, opined that in the wake of the Grayscale triumph, the SEC might find itself cornered into approving several spot BTC ETF proposals.
In another noteworthy development, a U.S. court sided with Ripple amidst the ongoing legal tussle initiated by the SEC. The lawsuit had contended that offering XRP on trading platforms was tantamount to proposing an investment contract.
However, the District Court for the Southern District of New York clarified in its verdict that the “introduction and trading of XRP on cryptocurrency exchanges weren’t equivalent to the endorsement and trading of investment contracts.”
That said, the court also declared that when offered to institutional players, XRP qualifies as a security since it aligns with the criteria outlined in the Howey Test.
Analysts at JPMorgan commented that the success of Grayscale suggests that if the SEC wishes to uphold its rejection of Grayscale’s proposal to transform its Bitcoin trust into an ETF, it might need to reconsider and revoke its earlier sanctions of futures-based Bitcoin ETFs.
Yet, taking such a step would be both “highly disruptive and a source of embarrassment for the SEC.” The analysts, therefore, find this scenario improbable. They further remarked:
“The odds seem to favor the SEC being compelled to green-light the spot Bitcoin ETF proposals currently awaiting decisions from various asset management firms, Grayscale included.”
