- The asset manager adopts wait-and-see approach until cryptos are legitimized.
- Fund’s CEO Larry Fink admits blochcain potential, drawing a line between the technology and the cryptocurrency.
BlackRock, the world’s largest asset manager, wants to stay away from crypto ETFs until the regulatory landscape clears out, the fund’s CEO Larry Fink said at the New York Times Dealbook Conference.
According to Fink, the industry needs to grow up and become more mature, before BlackRock considers launching an exchange-traded fund for digital assets. Like many other Wall-Streeters, the company is more optimistic about blockchain, the technology behind Bitcoin.
” I do see one day where we could have electronic trading for a currency that could be a store of wealth. But right now the world doesn’t need a store of wealth unless you need that store of wealth for things you should not be doing,” Fink explained.
Meanwhile, the regulation of the industry remains patchy and inconsistent. Moreover, digital assets are unregulated in most jurisdictions and even illegal in certain countries. The Securities and Exchange Commission postponed its own decision on Bitcoin ETF to get a better understanding of the concept. Back in January the Agency published a letter emphasizing “significant investor protection issues” related to these funds for retail investors.
“It will ultimately have to be backed by a government. 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,” Larry Fink said, pointing out Bitcoin’s anonymity as another risk factor.
Meanwhile, blockchain is a different thing. Fink thinks technology has a vast untapped potential for businesses, and it has nothing to do with digital money.
“We are a huge believer in blockchain. The biggest use for blockchain will be in mortgages, mortgage applications, mortgage ownership, anything that’s labored with paper,” Fink added
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