In a recent interview on FOX Business, BlackRock CEO Larry Fink shared his thoughts on the potential of an ethereum exchange-traded fund (ETF) amid regulatory scrutiny.
Despite concerns about a possible designation of ethereum as a security by the US Securities and Exchange Commission (SEC), Fink voiced confidence in the viability of launching such an ETF.
SEC's stance on ethereum raises questions
BlackRock and several other ETF providers have submitted applications for an ethereum spot ETF to the SEC. However, there are questions about the agency's approval of these ETFs as the May deadline approaches.
When asked about the SEC's stance on eth's potential classification as a security, Fink refrained from providing detailed comments but remained optimistic. “But I don't think that designation is going to be too disruptive,” Fink said, suggesting that such a designation would not necessarily hinder the creation of ethereum spot ETFs.
It was recently revealed that the SEC is exploring the classification of ethereum as a security and has issued subpoenas to three companies for details about the ethereum Foundation, a Swiss non-profit organization important to the growth and advancement of blockchain. This development has raised concerns about the possibility of launching an ethereum ETF in the United States.
On the other hand, analysts in the field share different opinions. Bloomberg ETF experts James Seyffart and Eric Balchunas have expressed doubt, noting the SEC's minimal interaction with the filings as concerning. However, Craig Salm has refuted this argument, suggesting that the SEC's lack of commitment should not necessarily dictate the outcome of the approval.
Fink is bullish on bitcoin
Despite these challenges, Fink remains optimistic about the long-term prospects of ethereum and bitcoin. Not only is BlackRock pursuing an ethereum ETF, it also operates one of the most successful bitcoin spot funds, the iShares bitcoin Fund (IBIT), which has amassed more than $17 billion in assets under management since its approval in January. .
BlackRock CEO Larry Fink says $IR Place bitcoin?src=hash&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>#bitcoin #ETF It is the fastest growing ETF in history
pic.twitter.com/NOsDlFgROi—Simon Dixon (@SimonDixonTwitt) March 27, 2024
IBIT is the “fastest growing ETF in the history of ETFs,” Fink said on Fox Business. He also said he is “very optimistic about the long-term viability of bitcoin. “We are now creating a market that has more liquidity, more transparency, and I am pleasantly surprised and would never have predicted before applying that we would see this type of retail demand,” he added.
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