Bitcoin (BTC) exchange-traded funds (ETFs) will not be approved anytime soon, according to Reggie Browne, senior managing director and head of ETF trading at Cantor Fitzgerald, Business Insider has reported.
Speaking yesterday at Georgetown University's Financial Markets Quality Conference, Browne said that for Bitcoin ETFs to be approved, there needed to be a strong regulatory framework for the crypto sector. At the moment, “it's very difficult for the commission to wrap their heads around a positive approval because there's no data yet ... the markets just aren't here,” Browne, who is known as “the godfather of ETFs” said.
Also yesterday, the chief executive officer of BlackRock, Larry Fink, echoed this sentiment at the New York Times Dealbook Conference in Manhattan. CNBC cited Fink as saying that BlackRock, which is the world’s largest asset manager, has no immediate plans to launch a Bitcoin ETF. While he didn’t rule it out completely, he indicated that cryptocurrency industry needed to mature first.
“I wouldn’t say never, when it’s legitimate, yes,” Fink said, as quoted by CNBC.
“It will ultimately have to be backed by a government,” Fink also said, arguing that Bitcoin’s level of independence could be a major roadblock for the cryptocurrency. “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.”
Fink also pointed to Bitcoin’s anonymity as being another risk factor. “I do see one day where we could have electronic trading for a currency that could be a store of wealth,” Fink said. “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.”