Ether Poised For Breakout As BlackRock CEO Eyes Spot ETH ETF After Successful Bitcoin Launch

Larry Fink, the CEO of BlackRock, has voiced support for spot Ethereum exchange-traded funds (ETFs), shortly after the successful debut of the asset manager’s eagerly-anticipated spot Bitcoin ETF.

Larry Fink ‘Sees Value’ In Spot ETH ETF

Around 11 spot BTC exchange-traded funds (ETFs), assets that invest in Bitcoin itself, started trading in the U.S. on Thursday. The much-awaited investment vehicles came into effect after a decade of waiting as the U.S. Securities and Exchange Commission (SEC) greenlighted them on Jan 10.

Investors are now looking at ether as the next likely candidate for a spot ETF approval, especially after BlackRock CEO Larry Fink’s recent comments.

“We believe this is just the beginning,” Fink said in an interview with CNBC today. “I see value in having an Ethereum ETF.”

BlackRock filed paperwork with the SEC in November to list a spot ETH ETF. Industry experts foresee that the application will be successful, as the legal technicalities that forced the SEC to reluctantly allow spot BTC ETFs will also probably apply to ether. 

Fink’s eagerness for an Ethereum-based ETF seems to be connected to his bigger plan of integrating blockchain technology into traditional finance.

“ETFs are step one in the technological revolution in the financial markets,” the seasoned finance veteran opined. “Step two is going to be the tokenization of every financial asset.”

Spot Ethereum ETFs Next Big Narrative?

Bloomberg ETF analyst Eric Balchunas yesterday placed the odds of spot ETH ETF approval by May at 70%, with the SEC’s first final decision deadline on the application from VanEck due on May 23.

Fink also expressed his excitement at the huge success Bitcoin ETFs have demonstrated on day one after debut, noting he was “very happy with the flows.” The newly minted spot Bitcoin ETFs managed to clear more than $4.6 billion worth of volume in their first day, with BlackRock’s iShares Bitcoin Trust accounting for around $1 billion. 

In the CNBC interview, Fink emphasized that Bitcoin is an asset class that offers protection against geopolitical risks, and unlike gold, “we’re almost at the ceiling of the amount of bitcoin that can be created.”

As ZyCrypto reported previously, Valkyrie co-founder and CIO Steve McClurg expects the launch of spot Bitcoin ETFs to pave the way for similar offerings based on other crypto assets, including ether and Ripple’s XRP.

ETH topped $2,698 on Jan. 12, hitting a new two-year high during the day as the Bitcoin ETF trading frenzy heated up, then sold off, settling at around $2,593 at press time. But ether is still up 16% over the past 7 days.