BlackRock CEO Recognizes Value in Spot Ethereum ETF

Larry Fink, CEO of financial giant BlackRock, stated in an interview with CNBC that he “sees value” in a spot ETF based on the second-largest cryptocurrency by market capitalization.

Part 2: ETH ETF pic.twitter.com/qnmB7azyQN

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“I do not believe that [digital assets] will ever become a currency. I consider it an asset class, no different from what gold has represented for millennia,” Fink explained, noting the limited issuance of Bitcoin.

In his view, this is “just a stepping stone to tokenization.”

On the evening of January 10, the U.S. Securities and Exchange Commission (SEC) announced the approval of 11 applications for spot exchange-traded funds based on the first cryptocurrency.

In addition to BlackRock, the list of approved issuers includes Bitwise, Grayscale, Hashdex, Valkyrie, BZX, Invesco, VanEck, WisdomTree, Fidelity, and Franklin Templeton.

During the pre-market session on January 11, ahead of its Nasdaq debut, the price of BlackRock’s spot Bitcoin ETF (IBIT) exceeded NAV by 25.6%.

The launch of these instruments triggered a surge in Bitcoin to $49,000. However, by January 12, the asset fell below $44,000, losing 6% in a day (CoinGecko).

This occurred following a statement by SEC Chairman Gary Gensler, who described the first cryptocurrency as “a highly speculative and volatile asset used for money laundering, sanctions evasion, and extortion by criminals.”

In November 2023, BlackRock submitted an application to the regulator for the registration of a spot Ethereum ETF. According to Nate Geraci, an advisor at The ETF Store, the market is likely to soon focus on these products.

Following the BlackRock CEO’s interview, Ethereum prices showed an increase. Over the past day, the cryptocurrency rose by 1.8%, with the current price above $2660.

In 2017, Fink called Bitcoin “an index of money laundering.” A few months later, he stated a lack of client interest in cryptocurrencies. However, by 2022, BlackRock had opened access to digital assets for investors in collaboration with Coinbase.

Back in July 2023, the company’s CEO highlighted the role of cryptocurrencies in democratizing investments and stated that investors could buy Bitcoin as a hedge against inflation instead of precious metals.