Technology

BlackRock CEO Backs Ethereum ETF After Bitcoin Success – Crypto News

Published

1 year ago

January 12, 2024

Dripp

BlackRock CEO Larry Fink recently acknowledged the potential of an Ethereum ETF in the United States, a significant development following the successful launch of their Bitcoin ETF. In an interview, Fink highlighted the successful trading debut of BlackRock’s Bitcoin ETF, IBIT, which amassed a remarkable $1.05 billion in trading volume. This achievement outstripped the first-day volume of the BITO Bitcoin futures ETF in 2021.

Fink’s insights into the digital asset market are notable. He equated Bitcoin to an asset class similar to gold, with the added nuance of Bitcoin nearing its maximum supply limit. His perspective solidifies the view of cryptocurrencies as more than transient digital phenomena. The move towards tokenization, as Fink suggests, marks a transformative era in the financial sector.

BlackRock’s Strategic Moves

BlackRock, the world’s largest asset manager, signaled its growing interest in crypto by filing for a spot at Ethereum ETF in November. This move came five months after its initial foray into a Bitcoin ETF. The proposed Ethereum ETF, named the iShares Ethereum Trust, continues BlackRock’s partnership with Coinbase Custody, reflecting the firm’s deepening commitment to the cryptocurrency realm.

Regulatory Outlook and Industry Growth

Speculation is high regarding the SEC’s stance on the Ethereum ETF, with analysts like Bloomberg’s Eric Balchunas estimating a 70% chance of approval by May. The SEC’s decision is eagerly awaited, with the first deadline for an Ark and 21Shares application due May 23. The approval of an Ethereum ETF could signal a significant shift in the regulatory landscape and further mainstream adoption of digital assets.

Since co-founding BlackRock in 1988, Fink has steered the firm to unprecedented heights. Under his leadership, BlackRock has grown into a global powerhouse with trillions under management. His recent comments reflect the firm’s increasing attention to the demands of its clients regarding cryptocurrencies.