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Bitcoin ETFs are just the first step in the financial revolution
- BlackRock CEO Larry Fink said ETFs are “the first step in the technological revolution in financial markets” on CNBC’s “Squawk Box.” The second step is tokenization.
- Tokenization of real-world assets such as gold has gained popularity among financial institutions cautious of crypto assets but passionate about the underlying blockchain technology.
- Fink said he “sees value” in an ether ETF, but that it is just a stepping stone to tokenization.
Bitcoin Exchange Traded Funds arrived after a bitter battle between the crypto industry and the United States Securities and Exchange Commission. Larry Fink, CEO of black rock – the world’s largest asset manager – believes this is just the first step towards a new financial world.
ETFs were seen as a way to give investors exposure to a young and risky asset class. But the value of blockchain technology provider goes beyond bitcoinand the new ETFs are just a precursor to broader tokenization of other assets, Fink told CNBC.Scream box” Friday.
“ETFs are the first step in the technological revolution in financial markets,” he said. “The second step will be the tokenization of each financial asset.”
Before BlackRock filed its bitcoin ETF application in June And created a wave of optimism Whether such a fund could become a reality, the tokenization of real-world assets such as gold was revived as a hot topic among financial institutions, who claimed it would give institutions the ability to provide more information and data to clients on their investments.
Some see bitcoin as the start of a larger push for crypto in the old financial system. After the approval of Bitcoin ETFs, investors are eagerly awaiting the first deadline set by the SEC to approve or reject ether spot ETFs, scheduled for May.
Fink seemed more focused on deploying blockchain technology to upgrade existing systems. Although some financial heavyweights such as BlackRock have been interested in Bitcoin over the years and the idea of offering Bitcoin exposure to their clients, there is a vast world of crypto beyond Bitcoin on which many will continue to remain cautious, at least publicly.
“I see the benefit of having an ETH ETF,” he said. “As I said, these are just the first steps towards tokenization.”
“We have the technology today to tokenize,” he added. “If you had a tokenized security…as soon as you buy or sell an instrument, it’s known that it’s in a general ledger that’s completely created. …That eliminates any corruption, with a tokenized system.”
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