Discussing Ethereum ETFs on Fox Business, BlackRock’s CEO Larry Fink asserted that the investment product could still surface, even if the U.S. Securities and Exchange Commission (SEC) labels Ethereum a security. Fink hinted that BlackRock is open to such an idea when asked if the asset manager would still list an ETF holding Ethereum when the cryptocurrency is a security.
BlackRock is among the 8 potential ETF providers that applied with the SEC for a spot Ether ETF. However, industry experts have expressed doubts whether the agency would approve the ETFs by the anticipated May deadline.
This discussion comes amidst debates over the SEC’s stance on Ether. The regulator has been looking to subpoena companies for information on the Ethereum Foundation. Many view this move as a signal to regulate Ether more strictly than Bitcoin, which the agency views as a commodity. According to a Fortune report, the regulator is looking to classify Ethereum as a security.
However, some industry experts like Craig Salm and Coinbase’s Paul Grewal believe the SEC doesn’t have a solid case when it comes to denying spot ether ETFs. Grewal has previously disclosed several statements from SEC officials to back his claims, where these officials have publicly labelled that ether is not a security.
Meanwhile, the SEC’s inquiries have stirred discussions within the cryptocurrency sector, particularly regarding the feasibility of spot Ether ETFs in the U.S. market. Some industry experts like Gabriel Shapiro, a noted crypto attorney, suggest that the SEC’s potential classification of Ether as a security could be a strategy to delay or outright deny approvals for such ETFs.
While concluding the conversion, Fink noted that he was “very bullish” regarding Bitcoin’s future viability. He stated, “We’re creating now a market that has more liquidity, more transparency.” He added that he was “surprised” about the heavy demand for the investment product and admitted that he did not anticipate this.
BlackRock’s iShares Bitcoin Trust ETF has grown to become one of the fastest-growing ETFs on record. The investment product managed to garner over $16 billion in assets under management since its inception on January 10. With several firms currently waiting for the SEC’s stance on ether ETFs, the decision is highly anticipated.
This development follows BlackRock’s unveiling of its first-ever tokenized fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). The fund, powered by the Ethereum blockchain, enables investors to earn yields in USD.
