Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
BlackRock Inc. (NYSE: BLK) CEO Larry Fink is officially a "believer" in the potential of Ether (CRYPTO: ETH) exchange-traded funds (ETFs).
What Happened: In an interview with CNBC on Friday, Jan. 12, Fink admitted he was initially skeptical, but now embraces the idea of cryptocurrencies as an asset class, particularly highlighting the prospects of Ether ETFs.
"I probably switched for the first three years of thinking about [how] I was a naysayer and about two years ago I switched," he said. "In the last two years, I'm a big believer."
But is cryptocurrency actually a currency? No, Fink argues.
"I don't believe it's ever going to be a currency," he said. "I believe it's an asset class."
He compared Bitcoin (CRYPTO: BTC) to gold, noting its role as a protective asset in times of geopolitical risks and uncertainties.
Read Also: Vanguard Shuns Bitcoin ETFs, Faces Social Media Backlash From Crypto Enthusiasts: 'Have Fun Staying Poor'
Why It Matters: Fink's comments come on the heels of the U.S. Securities and Exchange Commission's (SEC) approval of spot Bitcoin ETFs.
Prior to this, Bitcoin was only available to anyone willing to buy it directly.
Discussing the recent approval of Bitcoin ETFs, Fink highlighted the importance of ETFs in transforming financial markets.
"We believe ETFs is the technology that's going to transform every asset class," he said.
Fink also touched upon the future of financial markets, predicting that "step two is going to be the tokenization of every financial asset."
Fink sees Ethereum ETFs as a stepping stone toward the broader goal of tokenization.
"I see value in having an ETF. As I said, these are just stepping stones towards tokenization," Fink said.
He believes tokenization could significantly reduce issues like money laundering, enhancing transparency and efficiency in financial transactions.
Read Next: Bitcoin On Wall Street, Outcast in Seoul: South Korea Shows Crypto Cold Shoulder Amidst US ETF Boom
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