This week has seen extreme fluctuations in the price of bitcoin, ethereum, and other major cryptocurrencies after BlackRock launched a bitcoin invasion of Wall Street, which set off a series of absurd price forecasts.
The price of bitcoin surged to nearly $50,000 per bitcoin following the U.S. Securities and Exchange Commission’s (SEC) approval of nearly a dozen bitcoin spot exchange-traded funds (ETFs)—along with a severe price warning. Some believe that bitcoin may soon challenge gold’s $13.7 trillion market capitalization.
The CEO of BlackRock, the biggest asset management company in the world and the driving force behind the spot bitcoin ETF campaign, has now shared his vision for a “technological revolution” centered around bitcoin and cryptocurrencies—even as the price of bitcoin faces a dire warning from the Federal Reserve.
They think that this is just the start. ETFs represent the first phase of the financial markets’ technology revolution, according to renowned BlackRock founder and CEO Larry Fink. The tokenization of each and every financial asset will be the second step.
The blockchain technology behind cryptocurrencies like Bitcoin enables traditional assets to be “tokenized” on a public ledger, potentially simplifying and lowering the cost of transferring anything from stocks and bonds to real estate and alternative investments like art.
Fink stated that they currently have the technology to tokenize. When you purchase or sell an instrument on a general ledger that is produced collectively, it is known as a tokenized security. With a tokenized system, this removes all corruption.
BlackRock, JPMorgan, and other Wall Street behemoths discreetly started setting the foundation last year for the crypto revolution Fink has outlined, which has the potential to usher in a new age for markets.
Fink said that he does not view bitcoin, ethereum, or other cryptocurrencies as a novel form of money, but rather as an asset class more akin to gold that provides safety during difficult times and “protects” its owners from unstable geopolitical conditions.
Fink believes that if the world is afraid of geopolitical risks, people will be afraid of their own risks. It is no different than what gold has signified for thousands of years. It is a type of asset that provides you with protection.
BlackRock submitted an ethereum ETF application to the SEC in November, which now appears more likely in light of the agency’s approval of almost a dozen spot bitcoin ETFs this week.
Fink stated that he thinks owning an Ethereum ETF is valuable. These are merely stepping stones on the path to tokenization, and He firmly believes that’s where things are headed.
The bitcoin and crypto community has welcomed Fink’s remarks, which have helped to support the prices of bitcoin and ethereum after a sell-off on the introduction of a spate of spot bitcoin ETFs this week as speculators take profits after months of gains.
Mo Shaikh, the CEO of aptos crypto developer Aptos Labs, stated in an email that BlackRock’s most recent ETF attempt is not just a development but also evidence of the decentralized internet movement’s maturity.
This is entirely consistent with past patterns, in which innovation has always been supported by developed capital markets. In reference to the notion that blockchain and cryptocurrency will allow for a new, decentralized version of the internet, Shaikh said, “We’re not just witnessing the emergence of new technology; we’re part of a significant shift in how the public engages with web3.”
