BlackRock Spot Ethereum ETF Is The New Booming Potential Of The Market

Key Points:

• BlackRock’s CEO, Larry Fink, supports a BlackRock spot Ethereum ETF, anticipating a potential cryptocurrency market boost.
• BlackRock, along with other firms, seeks SEC approval for cryptocurrency spot ETFs, following the recent launch of Bitcoin ETFs.
• Analysts see a 70% chance of an SEC-approved Ethereum ETF by May 2024.

BlackRock CEO Larry Fink expressed support for the introduction of an Ethereum exchange-traded fund (ETF) just a day after the launch of the highly anticipated Bitcoin ETF.

BlackRock CEO Endorses BlackRock Spot Ethereum ETF Amidst Crypto Market Surge

In an interview with CNBC, Fink emphasized the value he sees in having a BlackRock spot Ethereum ETF. The move follows the recent approval of 11 spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC), fulfilling the long-standing demand from US investors for cryptocurrency spot ETFs.

As the world’s largest asset manager, BlackRock has already submitted an application for a BlackRock spot Ethereum ETF. Other contenders in this space include VanEck, 21Shares, ARK, and Grayscale, among others.

Bloomberg ETF analyst Eric Balchunas estimates a 70% likelihood of the SEC approving an Ethereum ETF by May 2024.

Balchunas suggests that Ether’s value is closely linked to Bitcoin’s trajectory, with the potential for the SEC’s approval to stimulate significant institutional funding for the second-largest cryptocurrency.

The approval of a BlackRock spot Ethereum ETF, following the green light for a spot Bitcoin ETF, has the potential to propel the cryptocurrency market into a new bull run. However, there is the possibility of a postponement by the SEC, citing technical reasons.

Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) made its trading debut in the US on Thursday, contributing approximately $1 billion to the total $4.6 billion trading volume collectively observed by the approved ETFs. The SEC’s recent approvals mark a significant development in the evolving landscape of cryptocurrency investments.