The crypto market is still overwhelmed by the recent approval of Bitcoin spot ETFs by the US Securities and Exchange Commission. BlackRock, a US asset management firm, is anticipating listing a similar product for Ethereum's native token. "I see value in having an Ethereum ETF. These ETFs are stepping stones towards tokenization, and I believe that's where we're headed," BlackRock CEO Larry Fink said.
The top executive of the world’s investment giant is betting on the broader popularity of cryptocurrency among investors. Bitcoin has already gained proper recognition. Ether’s triumph is yet to come.
Larry Fink assigns cryptocurrency to the class of financial assets. From his viewpoint, digital currencies are an alternative means of storing value. "Bitcoin is similar to gold in that it's a scarce asset," Fink said. Indeed, Bitcoin also serves as a safe-haven asset. "However, unlike gold, we're almost at the maximum supply of Bitcoin that can be created."
BlackRock is among other well-known investment firms such as Fidelity and VanEck to file their applications with the Securities and Exchange Commission for Ethereum spot ETFs. Some experts believe that the Commission will greenlight the first trial applications in May 2024. On the other hand, analysts at JPMorgan suggest the opposite forecast. They reckon that the odds are heavily against the launch of Ethereum spot ETFs. At least this spring, this idea will be hardly implemented.
Gary Gensler, the Chairman of the Securities and Exchange Commission, was to blame for the painstaking process of spot Bitcoin ETF approval. He has always asserted himself as a naysayer of cryptocurrency. So, his stance was the major hurdle to the positive verdict. Eventually, he gave consent. All in all, 14 asset management firms obtained approval for the new exchange product.
