If Ethereum is a security, an ETF could still be approved

Important facts:
  • BlackRock is one of the companies requesting approval of an Ethereum ETF.

  • Fink says he has been surprised by the interest in his Bitcoin ETF, IBIT.

Larry Fink, CEO of BlackRock, one of the world’s largest asset managers, assured that the possible designation of Ethereum’s cryptocurrency Ether (ETH) as a security will not prevent the creation of a spot ETF based on the cryptoasset.

Fink was consulted Interview with fox business On whether the possibility is open that ETH could have an ETF he said: “I think so.”, BlackRock introduced its ETF authorization application in November last year.

This is not the first time that a BlackRock executive has expressed his position on an Ether ETF; Earlier this year he also said in an interview that he sees “value in having an Ethereum ETF.”

The executive’s position comes at a time when many experts have made their predictions known about whether or not ETH-based funds are likely to be approved.

Most of the attention is on the fact that so far the United States Securities and Exchange Commission (SEC) is unclear about what classification it will give to Ether. In fact, the regulator May have launched a legal campaign that attempts to classify cryptocurrencies as having valueAs reported by CriptoNoticias.

If the SEC’s decision is successful, ETH and market performance will be affected, as it is the second largest cryptocurrency by capitalization after Bitcoin. This fact will trigger the implementation of a series of changes and new compliance rules, which many within the ecosystem do not consider suitable for this type of asset.

In fact, this will have a serious impact on companies and investors that already interact with or rely on Ethereum, including major exchanges like CME Group and Cboe Global Exchange that trade millions of dollars in ETH futures per day. Do business.

Bloomberg Intelligence ETF expert Eric Balchunas thinks so Chance of approval is 25% And Fox Business journalist Eleanor Terrett indicated that the SEC “doesn’t really participate in any meaningful way as it did with the Bitcoin ETF.”

For his part, the legal director of fund manager Grayscale believes they should be sanctioned because, Just as all the problems of the Bitcoin (BTC) fund were solved, the same should happen with the ETH fundBecause “when comparing Bitcoin spot ETFs to Ether they are identical.”

In the interview, Fink was also asked about the BlackRock Bitcoin Spot ETF (IBIT), which went public in January this year. In this regard, he said that it is “the fastest growing ETF in the history of the fund.”

Additionally, the executive said he was “very optimistic about the long-term viability of Bitcoin.” He indicated that he was surprised by how the fund developed, “We never anticipated before we applied that we were going to see this type of retail demand.”

IBIT has performed so well that its market capitalization reached $10 billion in less than three months after its launch. Having an ETF (of any kind, not just Bitcoin) which reached that value the fastest in all of history,

Currently, I.B.I.T. 16,000 million have been accumulated Dollars in assets under management (AUM) and More than 40% of all daily trading volume According to data from The Block, Bitcoin ETF’s.

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