Ethereum ETF Feasibility Unaffected by Security Designation

• BlackRock’s CEO Larry Fink expressed confidence in the feasibility of an Ethereum ETF, even if ether is designated as a security.
• Despite regulatory uncertainties and the SEC’s cautious stance, the market optimism for Ethereum ETFs remains high.

Recently, CNF reported that BlackRock, a leading asset manager, anticipates the SEC’s approval for an Ethereum ETF, buoyed by their success with Bitcoin ETFs. This development underscores the growing confidence in digital assets.

During a Wednesday interview on Fox Business, BlackRock’s notable foray into cryptocurrencies via a Bitcoin ETF earlier this year was discussed. When asked if BlackRock could list an Ethereum ETF that includes ether, even if classified as a security, CEO Larry Fink responded affirmatively. “I think so,” he said. This was echoed in a post by Eleanor Ferret on X account, highlighting Fink’s perspective on the potential impact of such a classification on an Ethereum ETF.

🚨NEW: Larry Fink on $ETH spot ETF: @CGasparino: There’s a lot of noise about the SEC declaring ether a security which would take it out of the bitcoin category as a commodity. How does that translate into an ETF?

Fink: “I don’t think – look and I really can’t talk about this… https://t.co/si9ZiM6z30 pic.twitter.com/SVFcGvwRRg

— Eleanor Terrett (@EleanorTerrett) March 27, 2024

Fink’s statement comes amidst debates over the SEC’s classification of ether as a security, which would differentiate it from Bitcoin’s commodity status. Despite these discussions, Fink remains optimistic about the Ethereum ETF’s viability.

I don’t think that designation is going to be that deleterious,

he noted in his conversation with journalist Charles Gasparino.

Furthermore, Fink’s bullish stance on the long-term prospects of Bitcoin aligns with BlackRock’s strategy. “We’re creating a market with more liquidity, more transparency,” he observed, expressing his surprise at the rapid evolution of the digital asset space.

In another report by CNF, two key developments were highlighted: the SEC’s delay in deciding on Ether ETFs filed by BlackRock and Fidelity, and the persisting high market optimism for these ETFs, which has led to significant price gains.

With eight issuers, including BlackRock, having filed with the SEC for spot ether ETFs, the market is awaiting the regulator’s decision in May. Despite predictions of a negative outcome, the excitement around these applications remains palpable.

Significantly, BlackRock’s success with its spot bitcoin ETF, the iShares Bitcoin Fund (IBIT), has been extraordinary. With over $15 billion in assets accumulated in just two and a half months, IBIT stands as a testament to the burgeoning interest in cryptocurrency ETFs.

As shown in the chart below, currently Ethereum (ETH) is witnessing a moderate increase, rising 0.06% in the past day and 1.68% in the past week, with its price holding at $3,572.