BlackRock CEO: There is Value in Spot Ethereum ETFs

Reading Time: < 1 minute

During an interview with CNBC, Larry Fink, the head of financial giant BlackRock, expressed his belief in the potential value of a spot ETF based on the second largest cryptocurrency by market capitalization.

Fink explained that he does not see digital assets becoming a currency, but rather an asset class similar to gold. He also noted the limited supply of Bitcoin and referred to this trend as a step towards tokenization.

On January 10, the US Securities and Exchange Commission (SEC) announced the approval of 11 applications for spot exchange-traded funds based on Bitcoin.

BlackRock was among the eligible issuers, along with Bitwise, Grayscale, and other major companies in the financial industry. Ahead of its Nasdaq debut on January 11, BlackRock’s spot Bitcoin ETF (IBIT) traded 25.6% above its stated value.

This launch led to a surge in Bitcoin’s price to $49,000, but the asset later fell below $44,000 on January 12, losing 6% in a single day, according to CoinGecko.