Cryptocurrency

BlackRock CEO Larry Fink: Bitcoin ETF approvals are ‘stepping stones’ towards tokenization



BlackRock CEO Larry Fink joins ‘Squawk Box’ to discuss the SEC’s approval of bitcoin ETFs, the impact on BlackRock, whether he’s a believer in bitcoin and crypto at large, and more.

DEFICITS. >> LET ME PIVOT TO ANOTHER TOPIC IN THE NEWS. THE FIRST TIME WE HAD THE OPPORTUNITY TO TALK TO YOU ABOUT IT WHICH IS BITCOIN. BITCOIN ETF. WE WILL TALK TO GARY GENSLER, THE CHAIRMAN OF THE S.E.C., WHO MADE THAT DECISION. WE TALKED A LOT ABOUT IT

YESTERDAY ON THE BROADCAST. HOW BIG A DEAL IS THAT FOR BLACKROCK? THIS WAS, FOR YOU, A BIG SWITCH. YOU WERE A IN NAY SAYER FOR A L TIME. >> ABOUT TWO YEARS AGO, I SWITCHED. AS I SAID IN LAST TWO YEARS, I’M A BIG DELBELIEVER.

>> IS THE FINK FAMILY A PEBUYER? >> I’LL BUY MUTUAL FUNDS AND SINGLE ETFs. I HAVE AN OPPORTUNITY TO DO THAT NOW. I’M A BELIEVER BECAUSE I BELIEVE IT IS AN ALTERNATIVE SOURCE FOR WEALTH HOLDING. I DON’T BELIEVE IT WILL EVER BE A CURRENCY.

I BELIEVE IT IS AN ASSET CRASS. WE WILL CREATE DIGITAL CURRENCIES. WE WILL USE THE BLOCKCHAIN. >> HOW IMPORTANT IS THAT TO THE LONG-TERM VALUE PROPOSITION OF BITCOIN? IF IT DOESN’T BECOME A CURRENCY OR DIGITAL GOLD AND ASSET OF SOME SORT, WHAT DOES IT PMEAN I

TERMS OF PRICE? >> I BELIEVE IT GOES UP. IF THE WORLD IS MORE FRIGHTENED AND FEARFUL OF THE GEOPOLITICAL RISKS, THEN IT IS NO DIFFERENT FROM GOLD AND WHAT IT REPRESENTED OVER A THOUSAND YEARS. IT IS AN ASSET CLASS THAT PROTECTS YOU. UNLIKE GOLD, WE MANUFACTURE

GOLD, WE ARE ALMOST AT THE CEILING OF THE AMOUNT OF BITCOIN. >> WHEN YOU HEAR CATHIE WOOD WHO SAID HER BASE CASE IS THIS TURNS INTO A $600,000 BITCOIN VALUATION. BASE CASE. YOU KNOW, $1 MILLION PLUS IN A SUPER OPTIMISTIC CASE. ARE YOU ANYWHERE IN HER HEREALM?

>> I HAVEN’T THOUGHT ABOUT IT. WE ARE TRYING TO CREATE AN INSTRUMENT TO RESTORE WEALTH. I THINK GOLD WILL REPRESENT A BIGGER VALUE. IF YOU THINK THIS IS DIGITAL GOLD, THERE WILL BE A REFERENCE POINT WITH GOLD AND DIGITAL BITCOIN. LET’S GET BACK TO WHAT HAPPENED YESTERDAY.

PART OF THE ANNOUNCEMENT IN THE OPENING WHERE WE CHANGED THE ARCHITECTURE OF OUR FIRM. MUCH OF IT HAS TO DO WITH HOW THEY THINK ABOUT ISHARES AND ETFs. WHEN WE BOUGHT BGI, FEW PEOPLE BOUGHT INTO THAT POSITION. WE WERE MISTREATED FOR A COUPLE OF YEARS.

WE SAID ACTIVE AND PASSIVE CAN COEXIST. WE WERE RIGHT IN THAT. WE SAID THE FIXED INCOME MARKET IS TRANSFORMED INTO ETFs. THAT HAS NOW HAPPENED. YESTERDAY WAS FIRST DAY OF BITCOIN ETFs. OUR REORGANIZATION IS TAKING THAT EETHOS OF WHAT HAS HAPPENE IN THE LAST TEN YEARS.

WE BELIEVE ETF IS THE TECHNOLOGY TO TRANSFORM EVERY ASSET CLASS. WE BELIEVE EVERYTHING WILL BE DONE THROUGH ETFs. WE BELIEVE THIS IS JUST THE BEGINNING AND WE NEED TO EMBED ETFs. >> WHAT ABOUT RICK? >> RICK IS DOING MORE ETFs IN HIS SPACE. WE HAVE TAKEN AN ACTIVE INVESTOR

AND PUTTING IT INTO AN ETF PLAT FO PLATFORM. ETFs ARE STEP ONE IN THE TECHNOLOGY REVOLUTION IN THE FINANCIAL MARKETS. STEP TWO IS THE TOKEN DIGITALIZATION OF THE ASSETS. WE ARE LOOKING AT BITCOIN AND WE ARE LOOKING AT ETFs IN THE SAME MANNER. THESE ARE TECHNOLOGICAL CHANGES

THAT WILL ALLOW US TO MOVE FORWARD. >> WHAT DID YOU SEE YESTERDAY, BY THE WAY, IN TERMS OF INFLOWS AS IT RELATES TO BITCOIN? >> WE WERE VERY HAPPY WITH THE FLOWS. WE RECEIVED 40% OF THE FLOWS YESTERDAY. ONE DAY DOESN’T MAKE A DIFFERENCE.

>> ARE THESE CUSTOMERS COMING OUT OUT OF OTHER FUNDS? GRAYSCALE. ARE YOU TRYING TO TAKE SHARES FROM THEM FROM TAKING THOSE CLIENTS OVER OR ARE YOU TRYING TO CREATE A NEW CLASS OF CUSTOMER? >> WE ARE TRYING TO CREATE A PLAN FOR NEW CUSTOMERS TO INVEST

IN THE FINANCIAL INSTRUMENT. OVER THE LONG RUN, DO WE BELIEVE? THINK ABOUT THE FEE DIFFERENCE WITH THE FEES AND TRUSTS. THESE ARE 120 BASIS POINTS. >> WE WERE TALKING ABOUT THE HEAD OF GRAYSCALE YESTERDAY. >> THESE ARE 20 OR 30 BASIS POINTS IN THE ETF WRAPPER.

>> IT IS STILL DIFFICULT TO SELL YOUR SHARES WITH TAXES. >> YES. THIS IS THE BIG ISSUE WITH THE S.E.C. THIS IS SOMETHING YOU MAY WANT TO ASK GARY. THE INDUSTRY ASKED THROUGH TRANSFER INKIND WITH THE ETF. >> THE INDUSTRY, MEANING COMPANIES LIKE YOURS, ASKED THE

S.E.C. TO ALLOW FOLKS WHO OWN SHARES VIA GRAYSCALE TO TRANSFER TO BLACKROCK OR FIDELITY? >> TO HAVE NO TAX RAMIFICATIONS. THEY WANTED TO CREATE FROM SCRATCH CASH ONLY. WE WERE ALL RESPECTING THE S.E.C. REASONS. >> IT CREATES AN OPPORTUNITY FOR GRAYSCALE TO KEEP THE CUSTOMERS.

>> OVER THE LONG RUN WHEN YOU ADD UP THE FEEFEES, PEOPLE WILL INTO THAT. >> DO YOU EXPECT OTHER CRYPTOCURRENCY ETF? WE WILL TALK TO GARY LATER. WILL HE HAVE TO APPROVE ETHEREUM? THAT IS SOMETHING THE S.E.C. HAS TO DO OR ALL OF THESE THINGS

WILL GO TO COURT FIRST? >> I COULDN’T RESPOND TO THAT. I SEE VALUE OF THE ETHEREUM ETF. THESE ARE STEPPING TONES TOWARD T TO TOKENIZATION. WE HAVE THE TECHNOLOGY TO TOKENIZE TODAY. IF YOU HAVE A TOKENIZED SECURITY AND IDENTITY, YOU, ANDREW, THE MOMENT YOU BUY OR SELL AN

INSTRUMENT ON A GENERAL LEDGER, MEANS YOU WANT

43 Comments

  2. @krpg9999

    I seriously believe that AWT77K story is just about to start, they can become top100 in 2024 and with $1 it is a cheap as fk one as well considering that millions will use that asset from day one

  8. @shutincharlie3461

    Hahahah, He wants you to use the WEF cbdc's !! That they control!
    People the blockchain is freedom or prison . Do WE the people control it or do you trust This guy and the WEF who want you to own nothing, become eliminated carbon and eat bugs , pay carbon taxs and purchase only what and when they allow it!!
    Buy Bitcoin, keep paper cash and gold….. probably guns and bullets as well .

  9. @Catch22699

    Blackrock does not respect the SEC, so think is full of crap the only reason why the SEC gave the OK with huge warnings was because of that court decision.
    Better Markets gives a fair and balance assessment of BTC ETF READ IT, AND FIND OUT THE TRUTH OF THIS FIASCO

  11. @chadksmith

    The interviewer needs to do a better job at letting people like Larry Fink talk, at least 30 percent more because it diminishes the understanding and quality of what Larry is saying!!

  18. @reginaerekson9139

    2:24 so if I have a million dollars, and the us economy goes sideways or I need to launder money – I take my million us dollars, trade it for bitcoin? I can really only use it on the dark web to buy weapons, drugs and people. What do you do with the million dollars I bought the bitcoin with?…. Make the economy go sideways? I can’t believe the sec let you get away with this 💩

  30. @user-ul1ku1ds9d

    Pay attention…this is what a professional bullshiter looks like…it’s all about the money…nothing more…he hated Bitcoin until customers and the underground bright it to light. They want ETF’s to jammed them full of fees. They are doing this because they lost the revenue of commissioned trades. That was a multi billion dollar revenue arm for them. Man I have been in this industry for too long…it’s all the same guys…Warren Buffet owns maybe 3 or 4 companies stock. He is adamit this is all you need to do when you find something that is a good business…you buy it over time, get a nice dividend yield and stay away from credit card debt. It’s the credit card debt that is killing investors and America. 24.00 percent interest and the balance never goes down…it’s the greatest financial trap invented. Call you credit card companies, tell them you can’t pay and settle in a cheap amount. Yes your credit gets slammed for a few years but it recovers trust me. Pay off the debt in 3 to 4 years and you will feel like a million dollars and can start investing all that wasted money. Good luck and study finance…it’s an amazing subject to learn. Cheers

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