BlackRock CEO Larry Fink Says Bitcoin Rally About “Flight To Quality” And “Pent Up Interest”

Updated: 17 October 2023

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BlackRock CEO Larry Fink said that yesterday’s Bitcoin spike to more than $30,000, triggered by an incorrect report of an ETF approval, underscores pent-up demand for the dominant cryptocurrency,

JUST IN: BlackRock CEO Larry Fink says crypto will play a role as a flight to quality. pic.twitter.com/epxg0xx95g

— Watcher.Guru (@WatcherGuru) October 16, 2023

Bitcoin’s recent recovery is also about a ”flight to quality” amid geopolitical tensions, Fink said, speaking in an interview on Fox Business on Oct. 16.

“Some of this rally is way beyond the rumour,” he said. “I think the rally today is about a flight to quality, with all the issues around the Israeli war now, global terrorism, and I think there are more people running into a flight to quality.”

Bitcoin briefly soared past $30,000 yesterday on false reports that the US Securities and Exchange Commission (SEC) had approved BlackRock’s filing for a spot Bitcoin ETF. BlackRock quickly refuted the claims, saying its iShares Spot Bitcoin ETF is still under review.

Despite paring gains, Bitcoin remains about 4.4% higher than before the false news broke and now traded at $28,456 at 8am ET. Fink said he had heard from clients around the world about the need for crypto.

🚨NEW: Official statement to @FoxBusiness from @BlackRock:

“The iShares Spot Bitcoin ETF is still under review by the SEC.”

— Eleanor Terrett (@EleanorTerrett) October 16, 2023

BlackRock Wants To “Democratize Crypto”

After BlackRock filed for a spot Bitcoin ETF in June, Fink said that the world’s largest asset manager wants to “democratize crypto.”

The regulator is under intense pressure to approve such an investment vehicle after Grayscale Investments won a landmark court victory over the SEC in late August.

The judge in that case called the regulator’s decision to approve Bitcoin Futures ETFs, but not spot Bitcoin ETFs, ”arbitrary and capricious.” The SEC has decided not to appeal the decision, further shortening the odds for an imminent approval.

Former BlackRock director Steven Schoenfield says spot Bitcoin ETFs may be approved as early as January, and that they may attract as much as $200 billion to Bitcoin investment products.

Fink noted that Bitcoin transactions were still expensive, and BlackRock wanted to address this. He urged regulators to review spot Bitcoin ETF filings as a way to expand access to crypto.

Fink has not always had a soft stance on Bitcoin. In 2017, he said the asset demonstrated the high demand for money laundering. In 2020, he also opined that Bitcoin could undermine the USD’s dominance as the world’s reserve currency.