BlackRock CEO Says No Cryptocurrency ETF Until Industry is “legitimate”

The world’s largest asset manager isn’t preparing for a bitcoin ETF just yet. According to the company’s CEO Larry Fink, BlackRock won’t offer a cryptocurrency ETF until the industry is “legitimate.”

Fink said at the New York Times Dealbook Conference in Manhattan on Thursday, “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.”

He added, “I wouldn’t say never, when it’s legitimate, yes.”

It was in January that the Securities Exchange Commission said that there are “significant investor protection issues that need to be examined” before sponsors can offer these funds to retail investors.

“It will ultimately have to be backed by a government,” said Fink. “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.”

When it comes to blockchain the CEO said, “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.”

Disclaimer: We have no position in BlackRock, Inc. (NYSE: BLK) and have not been compensated for this article.