Larry Fink, CEO of BlackRock, the world’s largest asset management company, expressed yesterday in an interview that he sees the value of an Ethereum ETF. Shortly after, ETH surged past $2,700, reaching a new high in over a year, but then quickly plummeted by 10%.
(Previous Summary:
Bloomberg Analyst: Ethereum Spot ETF Expected to “Go Public This Year”! SEC Approval Probability in May Reaches 70%)
(Supplementary Background:
It’s Ethereum’s turn! Spot ETF expected to be approved for listing this year! Bloomberg analyst: SEC has tacitly recognized ETH as a commodity)
Table of Contents:
BlackRock CEO: Sees the Value of an Ethereum ETF
Status of Ethereum Spot ETF Applications
ETH Surges Past $2,700 and Then Plunges
The U.S. Securities and Exchange Commission (SEC) recently approved a total of 11 Bitcoin spot ETFs, which is seen as an important milestone in traditional finance’s acceptance of cryptocurrencies. This has also led the market to be optimistic that an “Ethereum spot ETF” is also likely to be approved for listing this year.
BlackRock CEO: Sees the Value of an Ethereum ETF
In this context, Larry Fink, CEO of BlackRock, mentioned in a recent interview with CNBC that he has seen the value of launching an Ethereum (spot) ETF.
Status of Ethereum Spot ETF Applications
It is understood that there are currently 7 Ethereum spot ETF applications awaiting approval from the SEC. The applicants include BlackRock, Fidelity, Grayscale, VanEck, Ark/21Shares, Invesco/Galaxy, and Hashdex.
At the same time, the SEC’s final approval decisions for VanEck, ARK 21Shares, and Hashdex’s Ethereum spot ETFs are scheduled for May 2024, while the other applications will be decided within the next 6 to 8 months.
It is worth mentioning that Bloomberg ETF analyst James Seyffart had previously stated at the beginning of the year that when the SEC approved 9 Ethereum-related futures ETFs last year, it “implicitly” recognized Ethereum as a commodity. This means that the first Ethereum spot ETF is expected to be listed this year.
7 Ethereum spot ETFs awaiting approval from the SEC. Source: Bloomberg
ETH Surges Past $2,700 and Then Plunges
As for the price of ETH, coincidentally, during the time when the CEO of BlackRock made his comments, ETH experienced a surge starting from yesterday evening and reached a high of $2,717.32 around 23:00, setting a new high since May 9, 2022.
However, selling pressure quickly emerged, causing it to drop below $2,500, a 10% decline. At the time of writing, ETH is priced at $2,525, a 7.5% decrease in the past 24 hours, and it has given back the gains of the past 2 days.
With the price correction of Bitcoin and the expectations for the approval of the Ethereum spot ETF by the SEC in May, as well as the upcoming Cancun upgrade, whether it can have a sustained positive impact on the price of ETH remains to be seen with time.
ETH Price | Source: Binance Spot
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