BlackRock CEO sees Bitcoin and Ethereum ETFs as key steps toward tokenization
Larry Fink envisions a financial system powered by tokenization, suggesting that the technology for it is already available.
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BlackRock CEO Larry Fink shared his views on the significance of Bitcoin and Ethereum exchange-traded funds (ETFs), pointing to their role in shaping the future of tokenization, in a recent interview with CNBC.
With the recent greenlight for several spot Bitcoin ETFs, the spotlight has shifted to Ethereum. Responding to this matter, Fink adopted an optimistic viewpoint, saying that he sees “value in having an Ethereum ETF.” Notably, he saw Bitcoin and Ethereum ETFs as crucial steps toward tokenization.
“I think ETFs are step one in the technological revolution in the financial markets. Step two is gonna be the token digitalization of the assets,” said Fink, “These are just stepping stones toward tokenization.”
Tokenization is the process of converting real-world assets into digital tokens, which potentially increases accessibility to investment opportunities. Last year, BlackRock participated in a live securities settlement using JPMorgan’s Tokenized Collateral Network (TCN).
Fink suggested that the technology required for tokenization is already available. He also highlighted the benefits of using a tokenized system, stating that it could eliminate all forms of corruption.
While discussing Bitcoin, Fink drew a comparison between Bitcoin and gold, viewing them both as enduring asset classes that offer long-term protection. However, he was skeptical about the potential for Bitcoin to become a widely accepted means of exchange.
“I do believe it’s an alternative source of wealth holding. I don’t believe it’s ever gonna be a currency. I believe it’s an asset class,” stated Fink. “It’s no different than what gold represents over thousands of years. It’s an asset class that protects you.”
BlackRock filed for a spot Ethereum ETF last November, with Coinbase Custody as the custodian. The Securities and Exchange Commission (SEC) is expected to make a decision on an Ethereum ETF application from Ark Invest and 21Shares by May.