BlackRock says no to Exchange Traded Fund until cryptocurrency becomes legitimate

World’s largest asset manager BlackRock will not offer Bitcoin Exchange Traded Fund (ETF) until cryptocurrencies become legitimate. Larry Fink, BlackRock’s CEO said, at this moment he does not see the need for electronic trading for a currency that is not legitimate irrespective of how much wealth it can store. However, he does not rule out the option in case there is a need of it in the future. Fink said this in Manhattan on Thursday while attending  New York Times Dealbook Conference.

The Securities and Exchange Commission has raised concerns over the Bitcoin ETF owing to investor protection. Fink also called out that the level of independence that these cryptocurrencies bring with them may be a major drawback. He also insisted that these currencies need government’s backing and it will be really tough to get the backing until the government is completely aware of where the money is going. Fink also identified anonymity offered by cryptocurrencies as a major security issue as digital currencies have been used in the illegal marketplace to purchase weapons and illicit items and have also been dubbed the ‘currencies chosen by criminals’ by those who doubt Bitcoin’s existence.

Fink, however, said blockchain is a different technology and he believes that it will be a game changer especially in mortgages and anything associated with paperwork

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