Larry Fink, CEO of BlackRock, Likens Bitcoin to Gold Amidst Spot BTC ETF Launch
Larry Fink, CEO of BlackRock, has drawn parallels between Bitcoin and gold, comparing the digital asset to the popular yellow metal. Fink’s comments came just a day after spot Bitcoin exchange-traded funds (ETFs) went live, signaling a significant development in the mainstream adoption of cryptocurrencies. Speaking to CNBC, Fink highlighted Bitcoin’s utility as a store of wealth and made reference to its limited supply and upcoming halving event in April, which he believes will contribute to future price increments. BlackRock, the world’s largest asset manager, is among the 11 issuers approved by the Securities and Exchange Commission (SEC) to launch spot Bitcoin ETFs on registered national exchanges such as Nasdaq.
BlackRock Sees Value in Spot Ethereum ETFs as Crypto Investment Product
BlackRock, while recognizing the potential of Bitcoin, also sees value in spot Ethereum (ETH) ETFs as another investment product within the crypto space. Following the successful launch of Bitcoin-backed ETFs, BlackRock filed for a spot ETH ETF. However, it remains to be seen if the SEC will grant approval for such a product given their recent approval for spot Bitcoin ETFs. The introduction of spot Ethereum ETFs would further expand the options available for investors looking to gain exposure to the world’s second-largest cryptocurrency by market capitalization.
BlackRock’s Spot ETH ETF Filing Raises Questions Following BTC ETF Approval
BlackRock’s filing for a spot ETH ETF has raised questions regarding the SEC’s stance on cryptocurrencies. While spot Bitcoin ETFs have received approval, it is unclear if the SEC will adopt the same approach for spot Ethereum ETFs. SEC Chair Gary Gensler recently emphasized that existing financial laws apply to most cryptocurrencies, implying that not all cryptocurrencies may qualify as commodities. This raises doubts as to whether spot Ethereum ETFs will receive the same level of approval from the regulatory agency.
SEC Chair, Gary Gensler, Stresses Existing Laws Apply to Most Cryptocurrencies
SEC Chair Gary Gensler’s comments on the approval of spot Bitcoin ETFs shed light on the SEC’s perspective on cryptocurrencies. Gensler emphasized that existing laws apply to most cryptocurrencies, indicating that the SEC will apply the same regulatory standards to the digital asset class as it does to traditional securities. It is important to note that the approval of Bitcoin ETFs is not an endorsement of Bitcoin or other blockchain digital assets, but rather a recognition that Bitcoin is considered a “non-security commodity” under existing regulations.
ARK Invest CEO and SEC Commissioner React to Gensler’s Comments on Bitcoin
The comments made by SEC Chair Gary Gensler regarding Bitcoin have sparked reactions from industry leaders. ARK Invest CEO Cathie Wood criticized Gensler for denigrating cryptocurrencies with his comments, highlighting the potential of these digital assets and their disruptive nature. SEC Commissioner Hester Peirce, on the other hand, expressed her disappointment in the SEC’s historical denial of crypto products and stated that the agency has wasted valuable legislative resources over the past decade. The reactions from industry leaders suggest a divergence in views on the regulation and adoption of cryptocurrencies within the SEC.
Analyst comment
Positive: Larry Fink’s comparison of Bitcoin to gold and recognition of its utility as a store of wealth suggests increasing acceptance and future price increments. BlackRock’s filing for a spot ETH ETF also shows value in Ethereum as an investment product.
Neutral: BlackRock’s spot ETH ETF filing raises questions about the SEC’s stance on cryptocurrencies, as it is uncertain if they will grant approval. SEC Chair Gensler’s comments indicate that existing laws apply to most cryptocurrencies and the approval of Bitcoin ETFs is not an endorsement.
Negative: ARK Invest CEO Cathie Wood criticized Gensler’s comments, highlighting a divergence of views on cryptocurrency regulation within the SEC. SEC Commissioner Hester Peirce expressed disappointment in the agency’s past denial of crypto products, suggesting wasted resources.
