A month after reports revealed that Coinbase was exploring a crypto exchange-traded fund (ETF) through a collaboration with BlackRock (BLK), the firm’s CEO, Larry Fink, has come out to clarify that there is no intention to launch such a trading product at this time.
While speaking at the NYT DealBook Conference in Manhattan Thursday, Fink revealed that the firm is waiting for the digital currency market to become more “legitimate,” reciting Bitcoin’s “anonymity” as a cause of major concern.
“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.”
However, Fink did suggest that digital currencies, if properly regulated, could serve as a real store of value. This is a growing hypothesis regarding the future of Bitcoin, as the leading cryptocurrency has become progressively less volatile in the second half of 2018.
“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,” added Fink.
While Fink expressed his skepticism regarding cryptocurrencies, he did note that he’s much more bullish on the underlying blockchain technology.
“We are a huge believer in blockchain,” Fink said. “The biggest use for blockchain will be in mortgages, mortgage applications, mortgage ownership, anything that’s labored with paper.”
More: BlackRock won’t offer a cryptocurrency ETF until the industry is ‘legitimate,’ CEO Larry Fink says
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.