Larry Fink is the CEO of one of the largest Asset Management companies in the United States, Blackrock, and admits that cryptocurrencies have yet to become a legitimate financial asset.
Fink once again demonstrated his industry leadership when he admitted that Bitcoin Exchange Traded Funds (ETFs) should not be introduced at this point in time. He reasons that cryptocurrencies current value is in “storing of wealth” and not a currency which can be used as securities products at Exchanges.
However, he wavers that upon recognition of these virtual currencies as legitimate assets they can be easily introduced on an electronic trading platform.
Hesitation in using Bitcoin ETF
There is hesitancy among these high-net-worth investors in offering full-fledged financial products related to the cryptocurrencies despite the availability of massive capital and funds at their disposal.
Their hesitation stems from two reasons, the unsustainable volatility and secondly the anonymity associated with bitcoin.
The high incidence of the use of bitcoin and other smaller coins on the dark web markets, which encourages illegal deals for goods such as drugs, guns, and other goods, is also considered as a major negative aspect of cryptocurrency mass adoption.
ETFs for Entry into the crypto market
ETFs are natural financial instruments used in the exchange ecosystem to offer its traders and investing communities, flexible investment products.
Currently, in the context of the cryptocurrency offerings, ETFs are taken as a primary option for the big investment Institutions to offer its customers a safe an investment opportunity in Bitcoins ethers or others more coins within the safety Framework 30 exchanges can offer.
Store of Wealth
Larry Fink said that “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.”
The value of cryptocurrency is not in Bitcoin but in the blockchain technology which runs the Bitcoin. Along with Wall Street members, Fink also regards immutability, transparency and the decentralized ledger technology of this platform as vital to the future of cryptocurrency. Fink remains bullish about bitcoin markets.