In a recent interview with CNBC, Larry Fink, the CEO of BlackRock (BLK), expressed that he sees value in a spot Ethereum (ETH) ETF (Exchange Traded Fund) in the United States.
Fink’s comment comes following an impressive first trading day for the company’s new spot Bitcoin ETF product (IBIT) after the US SEC approval on Wednesday. The firm’s trading volume reached 1.05 billion volume on Thursday, surpassing BITO’s $1 billion first-day bitcoin futures ETF volume in 2021.
BlackRock Spot ETH ETF Application
BlackRock, the world’s largest asset manager, filed with the SEC for a spot Ethereum ETF last November, five months after it applied for its spot Bitcoin ETF product in June.
Speaking on the media house today, Fink said that he believes tokenization can eliminate matters related to money laundering and other corruption. He stated:
“I see value in having an Ethereum ETF. These are just stepping stones towards tokenization and I do believe this is where we’re going to be going”.
Referring specifically to Bitcoin, Fink stated he did not see cryptocurrency as a currency; rather he believes it is an asset class that protects investors against fears of geopolitical risk.”.
Will the SEC Approve a Spot Ethereum ETF?
Analysts in the crypto industry are optimistic about an ETH ETF especially since the SEC approved the 11 spot Bitcoin ETFs (Exchange Traded Funds) on Wednesday.
One of which is the Bloomberg ETF analyst, Eric Balchunas who noted that there is about a 70% chance that the regulatory watchdog will approve an Ethereum ETF by May 2024. According to him, the Ether spot is tied closely to the Bitcoin spot therefore, the possibility for the product to be approved is high.
Additionally, digital asset lawyer Joe Carlasare said that a spot ETH ETF will receive approval from the SEC, but it may take longer than expected.
With the spot Bitcoin ETFs already approved, if the SEC should approve a spot Ethereum ETF, the crypto market is expected to see a bull run. However, bearing in mind the agency’s cautious approach towards cryptocurrencies, it will not be surprising if postponed.
Apart from BlackRock, other firms that submitted applications for spot Ethereum ETF include VanEck, 21Shares & ARK, and Grayscale. The SEC’s decision on the product is expected by May 23, 2024, for VanEck’s ETH ETF while BlackRock’s decision is due by August 7.
