Earlier on 1st November, a statement given by Larry Fink clearly showed that the world’s largest asset manager would not be launching an exchange-traded fund for cryptocurrency anytime soon or at least till it shows some incredible growth and sustainability.
In a statement given at the New York Times Dealbook conference in Manhattan on Thursday, 1st November, BlackRock CEO Larry Fink said:
“I wouldn’t say never, when it’s legitimate, yes,”
Additionally, doubts regarding a bitcoin ETF have already been raised by The Securities and Exchange Commission that has yet to approve any of the multiple applications.
Back in January, The SEC published a letter highlighting “significant investor protection issues that need to be examined” before these funds could be offered to retail investors by sponsors.
Bitcoin (BTC) just recently marked its 10th anniversary, it was launched back in 2008 with an aim of bypassing banks and other government institutions. However, in today’s date, the level of independence would be a major obstacle for cryptocurrencies according to Fink.
According to the CEO of Blackrock, “It (Cryptocurrency) will ultimately have to be backed by a government.”
The CEO of the company monitoring nearly $6.4 trillion of assets further said, “I don’t sense that any government will allow that unless they have a sense of where that money’s going for tax evasion and all of these other issues.”
Bitcoin’s anonymity was another risk factor pointed out by Fink. As he said:
“I do see one day where we could have electronic trading for a currency that could be a store of wealth,” further adding. “But currently the world doesn’t require a store of wealth unless you need that store of wealth for things you should not be doing.”
Blockchain in an entirely different ball game
Fink becomes the latest Wall Street CEO that includes J.P. Morgans’s Jamie Dimon who have publicly expressed concerns for cryptocurrency but appreciate the underlying technology behind it.
IBM, Deloitte, Amazon, Facebook, IBM, J.P. Morgan Chase are some of the many huge firms that have begun work for developing a private blockchain solution for businesses, which is not related to cryptocurrencies whatsoever.
In a statement, Fink said, “We are a huge believer in the blockchain,” further adding, “The biggest use for blockchain will be in mortgage applications, mortgage ownership, mortgages, and anything that’s laboured with paper.”
Notably, several Wall Street veterans, like Blythe Masters, former head of J. P. Morgan’s global commodities business, have left traditional finance to run blockchain companies. Also, in the first week of October, Former White House Economic Advisor and former Goldman Sachs President, Gary Cohn was welcomed into the board of a blockchain start-up. All showing signs of the quick adoption for the decentralized platform.