Economics

SEC Approves Bitcoin ETFs In Historic Move. Blackrock’s Larry Fink Says It’s ‘An Asset Class That Protects You,’ Says It’s Next Step To Tokenization

January 12, 2024
by Jacob M. Thompson
1,001 Comments

“ETFs are step one in the technological revolution in the financial markets. Step two is going to be the tokenization of every financial asset. To me, this is where we believe it’s going,” Fink said.

On Wednesday, January 10th, a historical move was made when the United States Securities and Exchange Commission (SEC) officially approved the listing of the first-ever spot Bitcoin Exchange-Traded Funds (ETFs).

Today, the Commission approved the listing and trading of a number of spot bitcoin exchange-traded product (ETP) shares.

While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.

said SEC Chair Gary Gensler in a statement

According to Investopedia:

  • An exchange-traded fund (ETF) is a basket of securities that trades on an exchange just like a stock does.
  • ETF share prices fluctuate all day as the ETF is bought and sold; this is different from mutual funds, which only trade once a day after the market closes.
  • ETFs can contain all types of investments, including stocks, commodities, or bonds; some offer U.S.-only holdings, while others are international.
  • ETFs offer low expense ratios and fewer broker commissions than buying the stocks individually.

Bitcoin Magazine relished in the news, writing:

The introduction of spot Bitcoin ETFs in the United States is expected to unlock unprecedented opportunities for both institutional and retail investors, offering a more accessible and regulated avenue for participating in the burgeoning Bitcoin market.

Industry analysts predict that the approval of these ETFs will catalyze a surge in institutional capital inflow into Bitcoin, potentially fueling BTC’s value to new all time highs and solidifying its position as a legitimate asset class.

The SEC’s decision signifies a significant shift in regulatory stance towards embracing Bitcoin, signaling increased acceptance and recognition of it within the traditional financial realm. This approval is expected to pave the way for future developments in bitcoin-related investment products, potentially opening doors for a more diversified range of BTC-based financial instruments for investors.

As the SEC finalizes preparations for the listing of the first spot Bitcoin ETFs, market participants are on the edge of their seats, awaiting a new era in the investment landscape shaped by the integration of bitcoin into mainstream portfolios.

However, its launch has had encountered issues, with reports that investment management firm Vanguard was restricting customers from buying the Bitcoin ETFs via their platform.

Nevertheless, this morning Larry Fink, CEO of asset manager juggernaut Blackrock, which manages roughly $10 trillion in assets alone, praised the move and drew comparisons to owning gold, during an episode of CNBC’s Squawk Box.

I believe it goes up if the world is frightened, if the people have fearful geopolitical risks, they’re fearful of their own risks. It’s no different than what gold represented over thousands of years. It is an asset class that protects you.

Unlike gold where we manufacture new gold, we’re almost at the ceiling of the amount of Bitcoin that can be created. What we’re trying to do is offer an instrument that can store wealth.

He went on to say that this a bigger step to tokenization of assets, the future of commerce and transactions. SEE: Citibank Says $5 Trillion Of CBDCs Will Be In Circulation ‘By The End Of This Decade.’ Says Mass Adoption Of Cryptos Will Come Because Of CBDCs

Let me be clear: ETFs are step one in the technological revolution in the financial markets. Step two is going to be the tokenization of every financial asset. To me, this is where we believe it’s going. […] These are technological changes that can allow us to move forward.

[…] As I said, these are just stepping stones towards tokenization. And I really do believe that this is where we’re going to be going. We have the technology to tokenize today.

Think about this: if you had a tokenized security, and you have a tokenized identity, you Andrew [Ross Sorkin], the moment you buy or sell an instrument on a general ledger that is all created together – you want to talk about issues about money laundering and all that; this eliminates all corruption by having a tokenized system.

Fink explained

In September of last year, Citibank announced a shock move to tokenize customer’s assets. SEE: Citi Bank Announces Deposits Will Be Converted To Digital Tokens To Better Use Instant Transfer Payment System FedNow

At the time, as explained in a video report from Lena Petrova, CPA, citing other reports, Citi tested their new system with other world banks and the Federal Reserve, and found now there were no issues in converting the physical deposits into a digital dollar that then can be instantly transferred. This action indicates that the prospect of a CBDC is much father along than the Federal Reserve had led the public to believe.

Moreover, it was not that long after that JP Morgan-Chase announced a partnership with Fink’s Blackrock to launch a blockchain-based tokenized collateral network, similar to what Citibank had done.

AUTHOR COMMENTARY

When a Mr. Monopoly character like Fink tells you that “this eliminates all corruption by having a tokenized system,” know that the dead opposite is true! Don’t kid me with that cute ruse; as the old saying goes: you don’t hold it, you don’t on it.

I was always and still am skeptically about bitcoin and crypto, and I am even more pessimistic now, especially when he is making a direct comparison to gold and telling me this is a stepping stone for tokenization.

[14] It is naught, it is naught, saith the buyer: but when he is gone his way, then he boasteth. [15] There is gold, and a multitude of rubies: but the lips of knowledge are a precious jewel.

Proverbs 20:14-15

The “crypto bros” for years have been telling us that cryptocurrency is a way to circumvent the central bank death grip, claiming that these decentralized currencies were ways to transact without the banksters and handlers having their thumb on our money, as a way to achieve financial freedom and prosperity. And yet now, Larry Fink is making clear in no uncertain terms that these cryptos and now these crypto ETFs are a trailblazer for even greater enslavement, in the form of CBDCs, tokenization, etc. It was a screw job from day one.

[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).

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