BlackRockCEO Larry Fink said on Friday that the move into cryptocurrency fits into the wealth management giant’s broader mission of creating products that are easy to use and affordable for investors.
“We believe we have a responsibility to democratize investing. We’ve done a great job and the role of ETFs in the world is changing investing. And we’re just getting started,” Fink said on “Squawk on the Street.”
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BlackRock applied for a spot Bitcoin ETF on June 15, which appears to have sparked a rally in cryptocurrencies and a spate of similar applications from other money managers. The initial registration for the iShares Bitcoin Trust did not include an administration fee.
The Securities and Exchange Commission has previously denied dozens of applications for similar funds, but BlackRock’s involvement and proposed filing oversight agreement are being taken by many in the crypto industry as a sign that momentum is changing.
“We are working with our regulators because, as in any new market, we need to ensure that the BlackRock name is safe and secure when it’s on it,” Fink said.
Fink had previously been critical of cryptocurrencies, stating in 2017 that the popularity of digital currencies was due in large part to money laundering.
However, customer interest and high transaction costs prompted BlackRock to look more closely at entering this space, Fink said. He also added that cryptocurrencies can play a diversification role in investor portfolios.
“It has differentiating value over other asset classes, but more importantly, because it’s so international that it goes beyond any single currency,” Fink said.
The CEO declined to discuss the spot bitcoin ETF directly, saying he was forbidden from doing so pending the filing with the SEC.
BlackRock announced its second-quarter results on Friday, posting adjusted earnings per share of $9.28 on sales of $4.46 billion. The company said it currently has more than $9 trillion in assets under management.