BlackRock CEO: If Ethereum is a security, an ETF can still be Approved

Larry Fink, CEO of BlackRock, one of the largest asset managers in the world, assured that a possible designation of ether (ETH), Ethereum's cryptocurrency, as a security would not prevent the creation of a spot ETF based on the cryptoactive.
Fink was asked in an interview with Fox Business about whether the possibility that ETH could have an ETF is open and said: "I think so . " BlackRock introduced its ETF authorization application in November last year

This is not the first time that the BlackRock executive has expressed his position on ether ETFs; earlier this year he also said in an interview that he saw "value in there being an Ethereum ETF."

The executive's position arises at a time when several specialists have made known their forecast about the possibility or not of ETH-based funds being approved.

Most focus on the fact that until now the United States Securities and Exchange Commission (SEC) is not clear about the classification it will make of ether. In fact, the regulator would have started a legal campaign that seeks to classify the cryptocurrency as a value.

If the SEC's decision comes to fruition, the performance of ETH and the market would be affected, as it is the second largest cryptocurrency by capitalization after bitcoin. The fact would trigger the implementation of a series of changes and new compliance rules, which many within the ecosystem do not consider appropriate for this type of asset.

In fact, it would have serious repercussions for companies and investors that already interact with or rely on Ethereum, including major exchanges like CME Group and Cboe Global Exchange that trade millions of dollars in ETH futures per day.

Bloomberg Intelligence ETF specialist Eric Balchunas believes the probability of approval is 25%, and Fox Business journalist Eleanor Terrett indicated that the SEC really “isn't involved in the meaningful way it did with the ETFs.” “bitcoin”.

For his part, the legal director of the fund manager Grayscale believes that they should be approved, since, just as all the problems with bitcoin (BTC) funds were resolved, the same should happen with ETH funds, since “they are identical when comparing bitcoin spot ETFs with ether.”
Fink was also asked in the interview about the BlackRock bitcoin spot ETF (IBIT) that went public in January of this year. In this regard, he said that it is “the fastest growing ETF in the history of funds.”
The executive maintained that he was "very optimistic about the long-term viability of bitcoin," and indicated that he was surprised by how the fund evolved . "We would never have predicted before we applied that we would see this type of retail demand."

IBIT has performed so well that it reached a market capitalization of $10 billion in less than three months after it was launched. Being the ETF (of any type, not just bitcoin) that reached that value the fastest in all of history.

Currently, IBIT has accumulated $16 billion in assets under management (AuM) and more than 40% of all daily bitcoin ETF trading volumes , according to data from The Block.