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BlackRock CEO Larry Fink has expressed optimism regarding a potential spot Ether ETF, despite regulatory scrutiny
Fink assured Fox Business that even if Ether is designated a security, it wouldn’t hinder BlackRock’s ETF plans
The SEC is currently gathering information related to Ethereum, signaling potential regulatory developments

Blackrock CEO Larry Fink yesterday expressed optimism about the potential for a spot Ether exchange-traded fund (ETF), even in the face of regulatory scrutiny. Fink told Fox Business that any ruling that Ether is a security would not damage the desire for the second-biggest cryptocurrency and wouldn’t dent its plans to make it the second ETF following the awarding of a Bitcoin ETF in January. The Securities and Exchange Commission (SEC) is currently gathering information from entities related to Ethereum to determine what steps, if any, it will take next.

SEC Enquiries Fail to Strike Fear in Fink

The SEC first suggested that Ethereum could be a security in September 2022, following its transition from a proof-of-work to proof-of-stake consensus mechanism. Since then, the SEC has not made any firm assertions that it intends to pursue this path, but last week, it was revealed that entities connected to the blockchain, including the Ethereum Foundation, have received information requests from what the Foundation called an unnamed “state authority.”

One man who isn’t concerned about a possible designation of Ether as a security is Fink, who told Fox Business that such a designation wouldn’t be “too deleterious,” suggesting that Blackrock would not be put off by the concomitant regulatory hurdles. Blackrock is one of several asset managers vying for an Ethereum ETF, having filed in November.

While refraining from delving into specifics regarding the SEC’s actions, Fink reiterated Blackrock’s dedication to exploring opportunities in the cryptocurrency realm, including the potential for an Ether ETF.

Others More Skeptical

Fink’s optimism contrasts with concerns expressed by industry experts, who have publicly doubted the likelihood of the SEC approving Ether ETF applications by the looming May deadline. These include individuals who were highly confident about a Bitcoin ETF, so their thoughts carry some weight.

Every Ethereum ETF filing has been pushed back to its farthest deadline, with a decision not due from the SEC until May at the earliest.

The post Blackrock CEO Talks Up Ethereum ETF appeared first on FullyCrypto.

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Filed under: Bitcoin - @ March 28, 2024 9:23 am