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BlackRock CEO Larry Fink compared bitcoin to gold a day after btc spot ETFs went live, but predicted slim prospects for cryptocurrencies as a currency.
Speaking to CNBC about digital assets, ETFs and tokenization, BlackRock CEO noted that the world's largest asset manager sees value in ethereum (eth) spot ETFs as another cryptocurrency-related investment product following successful launch of identical funds backed by bitcoin (btc). , the largest token in cryptocurrencies.
Snitch clarified That BlackRock sees cryptocurrencies as a possible asset class, and bitcoin's utility revolves around storing and protecting wealth similar to the popular yellow metal. His comments also alluded to the hard-coded supply of 21 million btc halving in April, touting the scarcity as a factor behind future price increases.
BlackRock was one of 11 issuers that the Securities and Exchange Commission (SEC) approved to begin trading spot bitcoin ETFs on national registered exchanges such as Nasdaq. The basket of new ETFs netted more than $2 billion in first-day trading volume as Wall Street and TradFi tuned into crypto's 15-year chorus.
The center of gravity of cryptocurrencies is shifting from San Francisco to Wall Street. Once approved, pension funds, family offices and other investors who have historically been very skeptical are expected to finally dive into this new asset class. Most likely, we are approaching the next bull market.
Bam Azizi, co-founder and CEO of Mesh
Fink's company filed for a spot eth ETF shortly after bidding for a btc counterpart. However, it is unclear whether the SEC will approve such products following the nod for spot btc ETFs.
In his statement following the approval, SEC Chairman Gary Gensler highlighted that existing financial laws apply to most cryptocurrencies. Gensler more bitcoin-011023″ target=”_blank” rel=”noopener”>emphasized that the approval of btc ETFs was not an endorsement of bitcoin or other blockchain digital assets, noting that the Grayscale ruling essentially bitcoin-011023″ target=”_blank” rel=”noopener”>promoted the SEC's decision.
Gensler specifically referred to bitcoin as a “worthless commodity,” a designation hidden from other cryptocurrencies like eth. In response, ARK Invest CEO Cathie Wood said Gensler was denigrating cryptocurrencies with his comments, while SEC Commissioner Hester Peirce said the SEC had wasted legislative resources by denying these products for more than a decade. decade.