BY CNA Team - November 2, 2018
BlackRock’s Fink says ETFs will come when crypto matures
BlackRock, the world’s largest asset manager, will not be launching any crypto exchange traded fund (ETF) until there are clear rules overseeing them.
San Francisco-based crypto exchange Coinbase reportedly tried to enlist BlackRock in its quest to launch an ETF product.
The asset manager’s cofounder/CEO Larry Fink tells CNBC in a Nov 1 interview that the crypto space will need to mature and have government backing before BlackRock will consider launching an ETF.
“I wouldn’t say never, when it’s legitimate, yes,” he says, pointing out that the level of independence from regulatory oversight and anonymity are obstacles.
BlackRock manages US$6.4 trillion of assets and is said to have set up a working group on cryptocurrencies.
“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,” Fink points out.
He sees electronic trading for currencies that could be a store of wealth but questions how the store of wealth could be use, especially for illicit or criminal activities.
Fink, who has described bitcoin as “speculative” before, is supportive of blockchain, the technology underlying cryptocurrencies.
“We are a huge believer in blockchain,” he says. “The biggest use for blockchain will be in mortgages, mortgage applications, mortgage ownership, anything that’s laboured with paper”.
Image courtesy of BlackRock website.