Welcome and thank you for being part of the MyZucoins community! Dive into some important crypto, finance and tech news to stay ahead.
BlackRock’s CEO Larry Fink Sees Bitcoin as the Digital Gold Equivalent
BlackRock CEO Larry Fink believes that Bitcoin is the digital equivalent of gold and sees potential in making the cryptocurrency more accessible and affordable for investors. BlackRock, the world’s largest asset manager, recently applied for a spot Bitcoin ETF and is working closely with regulators to secure approval. Fink acknowledges his initial skepticism towards crypto due to its association with illicit activities but now recognizes Bitcoin as an international asset independent of any specific currency.
The aim of BlackRock’s involvement in the crypto space is to democratize access to digital assets and reduce costs for investors. While the SEC deemed BlackRock’s initial ETF application inadequate, Nasdaq has resubmitted the firm’s application, signaling ongoing efforts to gain approval. The filing by BlackRock has been followed by other traditional finance firms, including Fidelity, showing an increasing interest in Bitcoin ETFs.
Bitcoin’s price has been on an upward trend, reaching a 52-week high in June and maintaining a level above $30,000. The potential approval of a Bitcoin ETF by BlackRock and other financial institutions could contribute to further growth and adoption of cryptocurrencies. Read more here.
Potential Ripple Effect on Other Cryptos like Zucoins
The democratization of access to digital assets and the reduction of costs for institutions align with the goals of Zucoins. By making cryptocurrencies more accessible and affordable, the adoption of Bitcoin ETFs can expand the overall market participation and interest in digital assets. This increased interest can create a positive ripple effect for other cryptocurrencies, including potentially Zucoins, as more participants enter the space and explore other options.
Furthermore, 2023’s upward trend in Bitcoin’s price and the ongoing efforts to gain regulatory approval for Bitcoin ETFs indicate an underlying and growing positive market sentiment towards cryptocurrencies in the industry, despite the negative mainstream media headlines. Such a favorable market environment could expand the overall size of the crypto market and potentially attract more users to networks that solve issues facing traditional cryptocurrency networks, like Splitchain.
Who is “BlackRock”: The World’s Largest Asset Manager
BlackRock’s in the news a lot recently, following their application for a Spot Bitcoin ETF (Exchange-Traded Fund), which would open up the crypto world to even more institutional corporations, such as international pension funds and Wall St traders. The numbers below shed light on BlackRock’s immense presence in the financial industry, its role in shaping policy and its global influence as the world’s largest asset manager.
Here are some key facts to know about the firm:
1: BlackRock oversees an astonishing $10 trillion in assets, making it the world’s largest money manager. It was founded in 1988 by Larry Fink and has grown to manage more wealth than most countries’ GDP.
2: The firm operates the Aladdin technology platform, which analyzes and tracks portfolios, currently overseeing a staggering $21.6 trillion in assets. Companies like Vanguard, State Street Global Advisors, and major insurers rely on Aladdin to manage their investments.
3: BlackRock has hired numerous former government officials who now hold prominent roles. Brian Deese leads President Joe Biden’s National Economic Council, while Adewale “Wally” Adeyemo and Michael Pyle serve in key positions at the Treasury Department and as chief economic advisor to Vice President Kamala Harris, respectively. BlackRock, the largest investment manager globally, has garnered significant influence in Washington, D.C.
4: During the COVID-19 pandemic, BlackRock’s consulting arm, the Financial Markets Advisory (FMA) unit, played a significant role in the US government’s emergency asset-purchasing program. It had previously assisted the Federal Reserve during the 2007-2009 global financial crisis.
5: Larry Fink, BlackRock’s CEO, has been vocal about climate change and its impact on long-term prospects. The firm has taken steps to address sustainability-related risks, such as divesting from fossil fuels and introducing products that screen for exposure to such industries.
6: BlackRock has faced scrutiny for its record on supporting shareholder requests for climate-related disclosures. While the firm has voted in favor of some climate resolutions, Morningstar’s analysis showed a decline in support compared to the previous year. This is due to a conflict in the hedge fund’s primary goal of increasing returns for their shareholders, as they began to deviate from this and focus increasingly on greener eco-conscious companies, potentially at the expense of maximizing returns.
7: Rumors have circulated about Fink potentially joining the US government, but he has stated his commitment to BlackRock and his decision to remain in New York.
8: BlackRock has made notable acquisitions to maintain its competitive edge. In 2020, it acquired Aperio, an investment provider, for approximately $1 billion. Previous acquisitions include eFront, a French startup specializing in alternative investments management software, and the iShares ETF business from Barclays Global Investors. Read more here.
9: Their size and influence is also indicated by their recently created Ukraine Reconstruction Bank, partnering with one of the world’s largest banks, JP Morgan. This fund aims to attract billions of dollars in private investment to assist rebuilding projects in the war-torn country. It’s an opportunity for foreign investors to take part in the process of rebuilding Ukraine, while undoubtedly brokering local ownership or debt obligation deals, once the Russian-Ukrainian war comes to an end. Read more here.
Zucoins in the Evolving Landscape of Digital Assets
The fact that BlackRock oversees a massive amount of assets, manages a sophisticated technology platform like Aladdin and has made strategic acquisitions, both locally in the US and internationally, showcases the potential for growth and scalability in the digital asset industry.
By leveraging the insights from BlackRock’s success, Zucoins and the Splitchain network can position themselves as reliable and trusted platforms for individuals and institutions looking to participate in the digital asset economy. It also shows that the crypto industry hasn’t even scratched the surface of its potential yet.
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All the best,
Rob & Peter
MyZucoins