BlackRock CEO Expresses Optimism Over Future of Cryptocurrencies

• Earnings of $1.4B were up 27% year-over-year for the biggest asset manager in the world.
• Earlier this month, the CEO called Bitcoin an international asset.

On Friday, Larry Fink expressed optimism about the future of cryptocurrencies by discussing the growing interest he has seen from gold investors. 

The CEO of BlackRock said on CNBC after the company’s second-quarter earnings report that “more and more” gold investors have been inquiring about the role of crypto over the previous five years. Drawing parallels between the role exchange-traded funds (ETFs) have played in facilitating access to gold and what they could do for crypto.

Fink stated:

“If you look at the value of our dollar, how it depreciated in the last two months and how much it appreciated over the last five years … an international crypto product can really transcend that,” he said. “That’s why we believe there’s great opportunities and that’s why we’re seeing more and more interest. And the interest is broad-based [and] worldwide.”

Strong Q2 Performance

BlackRock’s profits increased significantly in the second quarter as a result of the unexpectedly robust market performance. Earnings of $1.4 billion were up 27% year-over-year for the biggest asset manager in the world. That’s equivalent to a per-share profit of $9.06. Revenue dropped by 1% to $4.5 billion. There was a 4% growth in assets under management, which brought the total to $9.4 trillion.

The U.S. SEC has rejected dozens of applications to list a spot bitcoin ETF in recent years, but BlackRock’s application last month included a surveillance-sharing agreement, which could be the deciding factor in the SEC’s eventual approval of such a product.

Fink further added:

“As with any new markets, if BlackRock’s name’s going to be on it, we’re going to make sure it’s safe and sound and protected.”

Earlier this month, the CEO gave an interview to Fox Business, where he also was optimistic about the future of cryptocurrencies. He referred to Bitcoin (BTC) as an “international asset” and supported the concept of crypto functioning as “digital gold.”

There has been a flood of money into the cryptocurrency market in the hopes that an ETF for Bitcoin would eventually be approved by the U.S. SEC. Especially with financial heavyweights like BlackRock backing it.

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