BlackRock CEO: Crypto ETFs Coming After Industry Gains Legal Status
Larry Fink, CEO of BlackRock investment corporation, sees no opportunity for his company to launch a cryptocurrency exchange-traded fund (ETF) until the industry is “recognized by law.”.
Speaking at the New York Times Dealbook on November 1, Fink raised the issue of the rationale for launching a crypto ETF in the current environment, adding, “I’m not saying never. When the industry becomes legitimate, I will say yes, “- quoted by CNBC.
He also noted that ETFs “in principle” should be supported by governments, which will not approve of such a financial instrument unless they are confident that the funds in it are not being used for illegal purposes. Fink highlighted the anonymity of bitcoin as a risk factor, since it opens up the scope for the use of cryptocurrency “in tax evasion and gives rise to other similar problems.”.
“I truly believe that one day we will be able to launch electronic trading in currency as a store of value. But for now, the world will do just fine without such a means of accumulation, which someone needs for illegal things, ”he added.
While Fink was again skeptical about cryptocurrencies, he stressed that his company deeply believes in the potential of blockchain. “The main areas of application of blockchain are mortgages, applications for mortgages, mortgage ownership, that is, everything that is done on paper,” he explained..
Fink made his comment ahead of November 5, the date by which the US Securities and Exchange Commission (SEC) is accepting comments on nine crypto ETFs proposed by three different applicants..
Last November, Fink already made a similar comment about Bitcoin when he said that cryptocurrency could fit into the legal framework, but this would have to sacrifice its anonymity, which would certainly scare away users..
“If you want to legitimize it and find out who is involved in the transactions … The question is how many people will want to use it after that,” he said then to Fink.