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BlackRock’s CEO said that the SEC’s classification of Ether as a security will not prevent the Spot Ethereum ETF from entering the market.
BlackRock, the world’s largest asset manager, has reaffirmed its commitment to bring its Spot Ether ETF to market regardless of whether the U.S. Securities and Exchange Commission classifies Ether as a security.
BlackRock CEO Larry Fink said in a March 27 appearance on Fox Business that ether being classified as a security by the SEC would benefit the company’s Spot ETH exchange-traded fund (ETF) ambitions. He said it was not “harmful”.
When asked whether the Ether ETF would still be a candidate even if Ether is designated as a security, Mr. Fink said: Said “I think so.”
BlackRock filed for a Spot Ether ETF in November, two months before the iShares Bitcoin Trust (IBIT) was approved by the SEC. IBIT began trading in early January and has since absorbed $15.4 billion, ranking as the third-largest commodity ETF behind the top two gold funds.
“IBIT is the fastest growing ETF in ETF history, and no one has added assets faster than IBIT,” Fink told FOX Business. “I had no idea before I filed that we would see this kind of retail demand.…I am very bullish on the long-term viability of Bitcoin.”
Fink’s comments came as hopes that the SEC would approve the pending Spot Ether ETF application in late May faded.
Bloomberg ETF analyst Eric Balciunas said he expected the fund to have a 70% chance of approval in January, but later revised his forecast. forecast “25% are very pessimistic.”
Balciunas cited the SEC’s lack of engagement with prospective Ether ETF issuers as a key reason for his skepticism, noting that the regulator had frequently interacted with Spot Bitcoin ETF applicants in the months leading up to the fund’s approval in January. He pointed out that he was holding a meeting.
“If the SEC makes a comment, our odds will at least double, probably triple,” Balciunas said. tweeted. “But it’s hard to imagine them leaving themselves and their publisher with less than two.” [months] Comments/corrections etc. ”
Brian Ruddick, an analyst at crypto trading firm GSR, similarly lowered his odds estimate from 75% to 20% since January, citing a lack of dialogue between applicants and the SEC.
However, Craig Sahm, chief legal officer of Spot Bitcoin ETF issuer Grayscale, said the same issues that apply to the Spot Ether ETF were resolved in a previous meeting with the SEC, so there is no SEC involvement. should not be assumed to be a bearish signal.
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“All of these issues have been addressed and are identical when comparing Spot Bitcoin and Ethereum ETFs,” Salm said. Said. “The only difference is that the ETF is not holding Bitcoin, it is holding Ether…I don’t think the lack of regulatory involvement should be indicative of any consequences. ”
However, many Spot Ether ETF applicants have updated their applications to include plans to stake a portion of their ETH if the fund is approved, a notable difference from Bitcoin ETF applications. .
On March 27, Fidelity filed an S-1 registration form for the Ethereum ETF and outlined plans to launch a staking program. Ark Invest and Franklin Templeton also filed applications in February that included provisions regarding Ethereum staking.
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