Fink stressed that the rise in Bitcoin’s price, triggered by false reports about the approval of a spot ETF, is only part of a broader trend. Despite the drop after the clarifications, Bitcoin maintained some gains, reaching $28,505, up 4.8% in one day.
Bitcoin is growing in strength, even though the chart may not reflect it
The head of BlackRock noted that while he cannot comment on details related to his company’s application for a Bitcoin ETF fund, he hears from clients around the world about the growing interest in cryptocurrencies.
Fink shared his opinion in an interview with Fox Business, “I think we’re seeing a move toward quality right now because of global issues such as the Israeli conflict and terrorism. More and more people are looking to escape into assets such as government bonds, gold or cryptocurrencies, depending on their perspective. I think cryptocurrencies can play an important role as a form of quality escape.”
Bitcoin’s price soars, fueled by fake news
False information published on Monday, October 16, about the Securities and Exchange Commission’s approval of BlackRock’s ETF fund caused a spike in the price of Bitcoin, whose value soared to nearly $30,000. After explaining the situation and the inevitable correction, the world’s largest cryptocurrency by market capitalization held on to some of its gains, reaching $28,505, up 4.8% in just one day. To put that in perspective, it’s up 7.4% for the month, and a solid 47.4% over the past year. These high price jumps are largely fueled by hopes for the emergence of a spot ETF.
Bitcoin is increasingly seen as a digital reserve of value
Larry Fink has been explicitly advocating this notion in recent months, according to which Bitcoin can represent a form of real reserve of value. He has emphasized this by referring to the leading cryptocurrency as “digital gold.”
Last month, the SEC announced the start of additional procedures to evaluate whether proposed spot ETFs on Bitcoin from major asset managers such as BlackRock, Invesco, Valkyrie and Fidelity should be approved or rejected. This has caused understandable delays, extending the review of the process by at least another month.
Meanwhile, faced with the current situation, the SEC decided to draw attention to the way fake news is affecting the market and through its social media communicated: “Be careful in drawing conclusions from the Internet. The best source of information about SEC actions is the SEC itself.”
The note serves as a warning to investors, especially those of me experienced, not to make investment decisions based on unverified data.