BlackRock CEO Larry Fink Spotlights Ethereum ETF, Recognizing Promising Potential
Posted: January 12, 2024 9:52 AM Updated: January 12, 2024 9:53 AM
Correction and fact check date: January 12, 2024, 9:52 AM
briefly
BlackRock CEO Larry Fink announced his intention to list a spot Ethereum ETF a day after the Bitcoin ETF was launched.
Investment firm BlackRock has announced its intention to list a spot Bitcoin ETF equivalent for ETH, the native token of the Ethereum blockchain, as part of its ongoing journey towards tokenization. BlackRock CEO Larry Fink praised the idea of an Ethereum exchange-traded fund (ETF), a day after the launch of the much-anticipated Bitcoin ETF.
“I see the value of owning an Ethereum ETF. This is just a stepping stone toward tokenization, and I truly believe that this is the direction we are going,” said BlackRock CEO Larry Fink in an interview with CNBC on Friday.
Larry Fink believes that tokenization has the potential to solve problems related to money laundering and other forms of corruption. Tokenization is the process of representing assets, whether real or digital, in the form of tokens on a blockchain.
Fink noted in his statement that he views cryptocurrencies as an asset class rather than a currency. He specifically mentioned Bitcoin as “an asset class that offers protection” against concerns related to geopolitical risks. He drew a parallel: “It’s no different than what gold has represented for thousands of years.”
However, unlike gold, he pointed out that the amount of Bitcoin that can be created is approaching its limit.
BlackRock’s iShares Bitcoin Trust (IBIT) was one of several products that began trading for the first time in the U.S. on Thursday, following the Securities and Exchange Commission’s (SEC) approval of the funds on Wednesday. IBIT contributed approximately $1 billion of the $4.6 billion total trading volume reached by the ETF overall.
Markets Expect Quick Approval of Spot Ethereum ETF
Following the SEC’s landmark announcement, market participants shifted their focus to Ethereum in anticipation of the planned approval of a spot Ethereum ETF in May 2024. This conversion saw the price of ETH surge 3%, reaching a high of $2,644.45 as of January 11. According to OKX market data.
Industry observers suggest that following the approval of the spot Bitcoin ETF, a spot Ethereum ETF now has a simple path to approval in 2024.
Eric BalchunasBloomberg’s senior ETF analyst estimates a 70% chance that a spot Ethereum ETF will receive approval by May, the month the SEC is expected to make a final decision on several applications. However, he notes that the timing of the launch is uncertain.
Likewise, Bloomberg ETF analysts. James Seypart We confidently shared that the SEC would approve a spot Ethereum ETF, noting that the SEC implicitly accepted ETH as a commodity when it approved the ETH futures ETF in September.
BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex are among the applicants currently vying for SEC approval for a spot Ethereum ETF. The SEC set VanEck’s decision deadline on May 23, ARK 21Shares’ decision deadline on May 24, Hashdex’s decision deadline on May 30, Grayscale’s decision deadline on June 18, and Invesco’s decision deadline on July. We decided on 5 days.
Fidelity and BlackRock also have application deadlines of August 3 and August 7, pending decisions.
As the Ethereum ETF gained attention after the SEC approved Bitcoin, BlackRock’s tokenization efforts expanded, marking a pivotal step in reshaping the cryptocurrency investment landscape.
disclaimer
In accordance with the Trust Project Guidelines, the information provided on these pages is not intended and should not be construed as legal, tax, investment, financial or any other form of advice. It is important to invest only what you can afford to lose and, when in doubt, seek independent financial advice. For more information, please refer to the Terms of Use and any help and support pages provided by the publisher or advertiser. Although MetaversePost is committed to accurate and unbiased reporting, market conditions may change without notice.
About the author
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles
alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles