BlackRock challenges the SEC: Seeks to revolutionize the market

Larry Fink BlackRock CEO


IMPORTANT POINTS:

  • Democratization of Bitcoin: Larry Fink, the CEO of BlackRock, seeks to “democratize” Bitcoin through an exchange-traded fund (ETF). 
  • Impact of the BlackRock Bitcoin Spot ETF on the market: Since the introduction of the Bitcoin Spot ETF by BlackRock.
  • Surveillance Agreement with Coinbase: In response to SEC concerns about market manipulation, BlackRock has signed a surveillance exchange agreement with Coinbase, a leading US cryptocurrency exchange.

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Larry Fink, Co-Founder and CEO of BlackRock Inc., has the goal of “democratizing” Bitcoin by creating a spot Bitcoin exchange-traded fund (ETF). Despite the fact that the Securities and Exchange Commission (SEC) initially rejected his application, filed on June 15, due to concerns about market manipulation, Fink remains firm in his view.

“We believe that we have a responsibility to democratize investments. We have done a great job and the role of ETFs in the world is transforming investing. And we’re only at the beginning of that,” Fink said when discussing the ETF application.

BlackRock’s request for the Bitcoin spot ETF sparked a cryptocurrency boom and spawned multiple similar requests from other asset managers. Although the initial application for the iShares Bitcoin Trust did not specify a management fee, it was considered a significant milestone given that BlackRock is the world’s largest asset management company, with more than $9 trillion in assets under management.

Since BlackRock’s filing, the value of Bitcoin, the world’s largest cryptocurrency by market capitalization, has risen by more than 20%. “We’re working with our regulators because, like any new market, if BlackRock’s name is going to be on it, we’re going to make sure it’s safe and secure,” Fink said.