Ethereum ETF Hopes: BlackRock CEO & Advocates Speak

BlackRock remains hopeful about an Ethereum exchange-traded fund (ETF) hitting the market, even if regulators classify Ethereum as a security rather than a commodity. Larry Fink, the CEO, voiced this confidence as the Securities and Exchange Commission nears its May deadline to decide on applications from eight issuers seeking approval for such an ETF product.

Although most industry watchers expect the SEC to reject the Ethereum ETF proposals regardless of how it categorizes Ethereum, Fink believes approval is still possible. In a recent Fox Business interview, the BlackRock chief answered when asked if an Ethereum ETF could proceed under a security designation.

JUST IN: BlackRock CEO Larry Fink says its Spot #Bitcoin ETF is the fastest growing ETF in history and he's very bullish on $BTC long term. pic.twitter.com/O3gIVir6FT

— Watcher.Guru (@WatcherGuru) March 27, 2024

Larry Fink’s confidence in ETH may be founded on the overwhelming success of the iShares Bitcoin Trust (an ETF based on Bitcoin). Although CEO Fink called the ETF “the fastest-growing ETF in history,” the fund attracted over $15 billion in assets under management within two and a half months of its launch.

The BTC ETF’s liquidity and transparency empowered Fink to envision how such products could revolutionize the market. This is possible not only for BTC ETFs but also as applied to different digital assets beyond BTC. If BlackRock’s black swan ETF indicates anything, enough hot-blooded investors are willing to invest in Ethereum through an exchange-traded fund.

However, not everyone shares Fink’s optimism. Bloomberg’s James Seyffart predicts SEC will likely reject current Ethereum ETF applications in May. While acknowledging the need for further review of Fidelity’s recent filing for a staking Ethereum ETF, Seyffart’s overall assessment suggests the proposals face an uphill battle.

Yes, @Fidelity filed the S-1 for their #ethereum ETF this morning. This is not an amendment this is their first. They had only filed a 19b-4 until today. https://t.co/stuKa4ZlSh pic.twitter.com/FiVJ08JwF8

— James Seyffart (@JSeyff) March 27, 2024

Ethereum ETF Advocacy: Industry Leaders Push for Approval

Asset management companies are not the only ones advocating for an Ethereum ETF. Former BitMEX CEO Arthur Hayes contends that Bitcoin ETF success paves the way. He believes this will enable similar products linked to other digital assets like ETH and Solana. Hayes believes banks are vested in approving these offerings due to the potential lucrative fees.

Craig Salm, Grayscale’s Chief Legal Officer, also supports the idea. Salm states that the SEC’s perceived lack of engagement with issuers on technical details should not indicate the outcome. He argues that the approval process for Bitcoin ETFs has already addressed many operational intricacies.

The crypto world anxiously awaits the SEC’s decision. The regulator’s ruling could significantly impact the acceptance and accessibility of ETH for investors through mainstream, regulated investment vehicles.

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