BlackRock CEO Larry Fink has expressed interest in an Ethereum ETF following the successful launch of the company’s Bitcoin ETF. Fink stated that he sees value in introducing an Ethereum exchange-traded fund in the United States, following the robust performance of the Bitcoin product (IBIT) on its first trading day, reaching a trading volume of $1.05 billion.
The CEO highlighted that these developments represent significant steps toward tokenization and emphasized that, in his opinion, cryptocurrencies are more of an asset class than a currency. This statement comes at a time when BlackRock, the world’s largest asset manager, filed for an Etherum ETF in November last year, five months after applying for the same product for Bitcoin.
Part 2: ETH ETF pic.twitter.com/qnmB7azyQN
— Cryptik1.eth |🛸 (@Cryptik1E) January 12, 2024
The launch of BlackRock’s Bitcoin ETF was highly successful, surpassing the trading volume of the first day of the Bitcoin futures ETF (BITO) in 2021. Fink’s interest in an ETH ETF underscores the recognition of diversification and growth in the cryptocurrency market.
By the End of May, an Ethereum ETF Could be Approved
Fink noted that, although he doesn’t believe cryptocurrencies will become a currency, he does consider them an asset class, comparing them to the historical role of gold over the years. He also emphasized that the supply of BTC is close to reaching its limit, unlike gold, adding a unique nuance to his perspective on these digital assets.
The market’s response to these statements and the launch of the Bitcoin ETF was positive, with significant trading volume. Meanwhile, BlackRock seeks to expand its presence in the cryptocurrency space by exploring other opportunities.
This move towards cryptocurrency ETFs is also supported by market analysts estimating a 70% chance of the SEC approving ETH ETF funds in May, with a final decision deadline for the applications from Ark and 21Shares set for the 23rd of that month. This scenario could represent a significant step in the adoption and acceptance of Ethereum as a legitimate investment.