Techironed

Blackrock predicts the possibility of ETH ETF

Blackrock predicts the possibility of ETH ETF Despite ETH Being Considered a Security

Blackrock predicts the possibility of ETH ETF Despite ETH Being Considered a Security, Keep up with the most recent developments on BlackRock’s possible Ethereum Exchange-Traded Fund (ETF). BlackRock CEO Larry Fink believes that launching an Ethereum-based spot ETF could still be viable even if Ethereum is deemed a security. In a recent interview with Fox Business, Fink expressed that such a designation would not necessarily be harmful.

https://www.foxbusiness.com/video/6349827399112

Blackrock predicts the possibility of ETH ETF

ETF analyst Nate Geraci finds Fink’s comment intriguing, suggesting that the SEC is actively considering classifying Ethereum as a security. Geraci believes that while it’s unlikely for the SEC to approve an Ether-based spot ETF in May, such a product could be permitted after a security classification.

Geraci noted, “This makes some sense & could allow SEC to thread needle given they already approved eth futures ETFs.” Meanwhile, the SEC is reportedly pursuing an aggressive campaign to classify Ethereum as a security, a stance that differs from the CFTC’s recognition of Ether as a commodity. The Ethereum Foundation, which powers the Ethereum ecosystem, is reportedly under investigation.

BlackRock’s IBIT Setting Records

During the interview, Fink also expressed being “very bullish” on Bitcoin in the long term, acknowledging the unpredicted surge in retail demand. BlackRock’s IBIT has broken several records, becoming the fastest-growing ETF.

However, Robert Mitchnick, head of digital assets at BlackRock, recently stated that there is minimal client demand for Ethereum, with other altcoins seeing virtually no demand. Mitchnick emphasized that Bitcoin remains the top priority for the financial giant.

https://www.blackrock.com/us/individual/products/333011/ishares-bitcoin-trust

Conclusion

In conclusion, BlackRock CEO Larry Fink’s openness to an Ethereum-based spot ETF, even in the event of a security classification, reflects a broader trend of increasing institutional acceptance of cryptocurrencies. The SEC’s potential classification of Ethereum as a security, despite the CFTC’s different stance, highlights regulatory complexities in the crypto space. Despite minimal client demand for Ethereum and other altcoins, Bitcoin continues to dominate BlackRock’s priorities, signaling ongoing confidence in its long-term potential.

Leave a Comment

Your email address will not be published. Required fields are marked *