The CEO of BlackRock, the biggest asset manager in the world, Larry Fink, said in an interview that the recent surge in the price of cryptocurrencies shows a “flight to quality” driven by genuine economic causes rather than fake speculation.
“This rally is not even close to being a rumor. “With all of these issues surrounding the Israeli war, today’s rally is about taking a leap of faith toward quality,” Fink added. More investors are seeking safety in higher-quality assets like Treasuries, gold, and cryptocurrency.”
Fink’s remarks came after the price of bitcoin had risen earlier in the day on the back of unfounded reports that the SEC had authorized a spot ETF for bitcoin. When it was discovered that the reports were not true, the cryptocurrency markets quickly corrected themselves, wiping all the profits that had been made.
Fink drew comparisons between cryptocurrencies and conventional safe havens such as gold and United States Treasuries, both of which have a historical reputation for being reliable investments during times of instability and geopolitical crises. Fink’s comparisons were made in an attempt to show that cryptocurrencies are comparable to these classic safe havens.
In a similar vein, Fink has shown strong sentiments about asset tokenization and has said in the past that he believes it has the potential to “revolutionize finance.” The very first tokenized fund shares were issued by BlackRock using JPMorgan’s brand-new tokenization platform just a week ago.
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