Rumors have been abounding about some of the world’s largest institutions rooting for a Bitcoin ETF. However, that is yet to happen as SEC is still wary of the uncertainties of the crypto market. The latest announcement by BlackRock is also one of the things causing sleepless nights for Bitcoin lovers.
BlackRock Doesn’t Want An ETF
BlackRock is the largest asset management company in the world, but it’s still not ready for a Bitcoin ETF. In fact, as its CEO Larry Fink says, BlackRock is avoiding such an ETF at this time. Larry cited lack of proper legitimacy within the cryptocurrency industry as one of the reasons the company is shying away from getting involved with an ETF.
However, Larry said that BlackRock isn’t entirely dismissing the possibility of launching a Bitcoin ETF in the future, but the industry needs to develop a bit more in terms of legitimacy to really entice BlackRock into the ETF business. Larry was speaking at the Dealbook Conference hosted by the New York Times.
What SEC Says
The Securities and Exchange Commission has had its fair share of misgivings in regard to crypto ETFs. Just recently, the commission threw out 9 applications seeking an approval for such ETFs. One of the most serious reasons cited was the almost complete lack of regulation and oversight that results into lack of accountability.
To add to that, the anonymity that comes with crypto transactions could give bad actors a free pass to commit crimes like money laundering and trading in illegal commodities including guns and drugs. According to Larry Fink, this kind of transactional independence is one of the biggest obstacles facing the crypto world.
However, SEC has since rescinded its decision and made plans to seek broader public involvement in the review process. In Larry Fink’s view, the advent of crypto ETFs needs to have the blessings of both the public and the governments, without which they may never take off the ground.
Blockchain Is Welcome
In an interesting twist, blockchain technology seems to have won the hearts of many prominent people and influential corporate institutions. Various CEOs of big companies have expressed support for the technology.
One of them is Jamie Dimon (CEO, J.P Morgan Chase). Other companies include Amazon, IBM, Facebook, and Deloitte. These companies have announced plans to explore the blockchain technology and use it to improve their operations.