BlackRock CEO Larry Fink has expressed optimism for a spot Ethereum exchange-traded fund (ETF) following the successful launch of the company’s Bitcoin ETF product, IBIT. The Bitcoin ETF garnered over $1 billion in trading volume on its first day. Fink’s comments come as BlackRock filed for a spot Ethereum ETF in November 2022, with speculation that approval could come as early as May 2023.
BlackRock’s proposed Ethereum Trust, like its Bitcoin counterpart, would custody the asset at Coinbase. The firm’s move is seen as a step towards bringing cryptocurrency into the mainstream investment world. Fink emphasized his belief in the future of asset tokenization, stating that blockchain technology can help eliminate corruption.
Other major asset managers, including Fidelity, Ark Invest, VanEck, have also filed for spot Ethereum ETFs. The first ruling deadline on an application is May 23 for Ark and 21Shares, with decisions on BlackRock and Fidelity expected to arrive towards mid-year. Industry analyst Eric Balchunas puts the odds of a spot Ethereum ETF being greenlit by May at 70%.
Investors seem to agree with this prediction, with 58% of bets on prediction platform Polymarket expecting such approval by then. The market also sees big potential, with anticipation around ETFs helping to catalyze a 13% gain for Ether over the last two weeks. Meanwhile, Bitcoin is up just 3.7% in the same period.
Fink explained that while Bitcoin offers a novel type of “digital gold” store of value, platforms like Ethereum expand possibilities greatly. The “programmability” of smart contract networks allows all kinds of financial assets to be represented and traded via blockchain. This unlocks a whole new realm of tokenized securities trading efficiently on-chain 24/7.
With Ethereum transitioning to a more energy-efficient proof-of-stake consensus and delivering scalability upgrades that reduce costs, the case for institutional investment strengthens. Observers speculate a successful Ethereum spot ETF could usher in a new flood of mainstream capital into crypto markets. If asset tokenization via blockchain does begin disintermediating traditional finance, Ethereum looks poised to be the critical foundational infrastructure.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Eric Balchunas, Larry Fink |
| Companies | VanEck, Securities and Exchange Commission, Ark Invest, Coinbase, Polymarket, Fidelity, 21Shares, BlackRock |
| Currencies | Bitcoin, Ethereum |
| Securities | None |
