Larry Fink Believes in the Possibility of an Ethereum Spot ETF, Despite SEC Classification of ETH as a Security
Larry Fink, CEO of BlackRock, maintains an optimistic outlook on the listing of an Ethereum Spot ETF, even if ETH is classified as a security by the US Securities and Exchange Commission. This statement comes as the second largest cryptocurrency faces increased regulatory scrutiny.
“I am very bullish on the long-term viability of Bitcoin. We are creating a market that has more liquidity, more transparency, and I am pleasantly surprised, I would have never predicted this before,” Fink said.
BlackRock’s Vision on Crypto ETFs
Asked about the possibility for BlackRock to list an ETF containing ETH as a security, Fink expressed optimism, stating, “I think so,” contrasting concerns that such a classification may have for the future of ether ETFs in the United States.
SEC Investigation on Ethereum
The SEC is currently examining the nature of ether to determine if it should be considered a security, which would involve increased regulatory oversight. Several companies, including the Ethereum Foundation, have received subpoenas as part of this investigation, fueling speculation about the potential impact of such a classification on the possibility of creating an ETH ETF in the US.
Despite these uncertainties, eight potential issuers, including BlackRock, have submitted applications to the SEC to launch an Ethereum Spot ETF in the market. The regulator’s final decision is expected in May, with industry experts anticipating the rejection of applications, regardless of the SEC’s classification of ether.
Furthermore, BlackRock also stands out as one of the 11 issuers of Bitcoin Spot ETFs, with its iShares Bitcoin Fund (IBIT) gathering over $15 billion in assets in just two and a half months, becoming the “fastest-growing fund in the history of ETFs,” according to Fink.
