Blackrock Plans an Ethereum ETF After the Bitcoin One

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Last week, history was made in the cryptocurrency industry. Blackrock’s long-gestating Bitcoin ETF was finally approved, marking a new era in the history of crypto. It sparked a great price run for Bitcoin, yet things have been subdued ever since. The slow start doesn’t concern experts nor Blackrock. What’s more, the company’s CEO Larry Fink is already thinking about his next project – an Ethereum ETF.

However, compared to the original, advertising for it might not be simple. According to some experts, people were already sold on a Bitcoin ETF, and selling another one after they already diversified their investment portfolio might be too much to handle.

One Idea After Another

The Bitcoin ETF made its debut at the beginning of the year, much sooner than many expected. Blackrock’s CEO Larry Fink is already thinking ahead. He’s already begun the marketing drive for a second spot ETF, this time with Ethereum in the focus. Fink is trying to sell this idea thanks to Ethereum’s transformational utility, and the ever-increasing price.

The Wall Street machine is always up to being fed. Pushing more crypto ETFs now that they’re live is the obvious choice. It was a revolutionary step for the progress of cryptocurrencies. That’s not to mention the fact that it means a lot from another perspective – beating the SEC. The watchdog is notoriously against the idea of crypto, and after approving the first Bitcoin SEC, it’s clear that the times are changing.

An Ethereum ETF, however, would present a marketing conundrum. Sui Chung, CEO of Benchmarks, a Blackrock partner and digital assets index provider, says that Bitcoin’s investment ETF role is different from Ethereum’s. Chung says that it’s a hard sell because of diversification too. Any company that has a Bitcoin spot ETF or plans one has already sold investors on diversifying their portfolio. Many of them have put 1% or 2% in a portfolio with stocks, bond, gold, or any other commodity. Selling them a pitch for an Ethereum ETF right after that might be a bit too much.

Fink isn’t backing down. He’s already laying the ground for his ideas, talking tokenization which TradFi firms love. However, he also needs to explain DeFi and smart contracts to the average user. Then there’s blockchain staking and other concepts which might feel like pushing the idea a bit too far.

What’s Next?

After the Bitcoin spot ETF went live, Bitcoin’s price—and Ethereum’s—went up for a while. While it hasn’t broken new ground or reached a record price, it has been significantly higher than expected. Bitcoin is currently holding ground around $42,000, and is poised to make another run after the May halving. Everyone expects 2024 to be a breakout year for Bitcoin, and with the first spot ETF confirmed so early during the year, that’s not just wishful thinking.

The halving will surely have some kind of effect, and possibly set the tone for new records down the line. One way or another, we’re expecting good things to happen, Ethereum ETF or not.

January 17, 2024: • No Comments

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