Larry Fink, CEO of BlackRock, explained in a recent interview that there is vast investment potential out in the crypto space and specifically mentioned ETFs tied to Ethereum (ETH). This is in line with the earlier successful launch of similar funds being linked to Bitcoin (BTC), representing a big stride for the world’s biggest asset manager.
BlackRock’s Perspective
Fink clarified that BlackRock views cryptocurrencies as a potential asset class. He drew parallels between BTC’s role in wealth storage and protection to that of gold, highlighting BTC’s unique attributes, such as its hardcoded supply limit and upcoming halving in April, as factors influencing future price increments.
BlackRock, having been among the 11 issuers approved by the SEC for spot Bitcoin ETFs, experienced a substantial trading volume exceeding $2 billion on the first day. This move signals a shift in crypto’s center of gravity from San Francisco to Wall Street, hinting at a possible entrance of traditional investors like pension funds and family offices.
Read also: What is Ethereum?
Bam Azizi, co-founder and CEO of Mesh, remarked that upon approval, pension funds, family offices, and other investors who have historically been very skeptical about crypto would finally dip their toes into this new asset class. He also added that the bull market is near.
Read also: What is a cryptocurrency ETF?
U.S SEC’s Stance on ETH ETFs
Despite BlackRock’s filing for a spot ETH ETF following their BTC counterpart, uncertainties surround U.S SEC’s approval for Ethereum-based products. SEC Chair Gary Gensler has emphasized that existing financial laws apply to most cryptocurrencies but clarified that approving BTC ETFs doesn’t serve as an endorsement for Bitcoin or blockchain assets.
In response, Cathie Wood, ARK Invest CEO, stated that Gensler denigrated crypto with his comments, while U.S SEC Commissioner Hester Peirce criticized the U.S SEC for squandering legislative resources in denying crypto products for over a decade.
State of Bitcoin
As of the time of writing, BTC price stands at $43,088, representing a -1.6% decline in the last seven days per data on CoinGecko. Analysts, including Crypto Banter, note a diminishing hype around Bitcoin ETFs, with potential profit-taking by investors. The analyst suggests that bitcoin halving, set to occur in 96 days, may still increase demand and price, with minor pullbacks expected in the larger upward trend.
On the other hand, skeptics who do not encourage trading or investing in BTC are not excited about the approval of Bitcoin ETFs. Regardless of the recent development in the world of Bitcoin, Sharmin Mossavar-Rahmani, Chief Investment Office for Goldman Sachs opines that BTC shouldn’t be a long-term investment because of its volatile nature.
Read also: Spot Bitcoin ETFs and the Crypto Market: The Other Side of the Coin
Read more: Bitcoin dips 3% after False U.S SEC Spot Bitcoin ETF approval
Ethereum’s (ETH) Price Movement
The positive trend of ETH comes after Bitcoin ETF approval, confirming the price rise by 13.91% over the past week.
Some projects in the Ethereum ecosystem have also demonstrated significant increase lately, with Ethereum Naming Service (ENS) showing a 79% increase in the last week, and Ethereum Classic (ETC) gaining 46% in the last week.
Read also: Historic U.S SEC approval paves way for spot Bitcoin ETFs trading.
Credit: Solomon Victor is a Technical Analyst who is also knowledgeable about various aspects of blockchain and cryptocurrency.
