BlackRock CEO Larry Fink has expressed confidence in the possibility of launching an Ethereum ETF, even if the SEC were to declare Ethereum’s native asset, ETH, a security.
Earlier this month, reports surfaced suggesting that the Securities and Exchange Commission (SEC) in the United States was aiming to classify ETH as a security. This has sparked speculation within the crypto community about the implications of such a designation, particularly in relation to the pending applications for an Ethereum ETF.
Nevertheless, Fink, the CEO of BlackRock, the largest asset management company in the world, remains steadfast in his belief that labeling ETH as a security would not hinder the launch of an Ethereum-based ETF. BlackRock is one of several fund managers seeking to introduce such a product for Ethereum, following the successful introduction of Bitcoin ETFs.
Fink recently shared his thoughts on the rumored move by the SEC in an interview with Fox Business. While he was cautious about commenting on the topic broadly, Fink stated to Fox Correspondent Charles Gasparino that designating ETH as a “security” would not have a significant negative impact on the prospects of an Ethereum-based ETF.
When asked directly if BlackRock could proceed with launching the ETF even if ETH were considered a security, Fink replied, “I think so, yeah.”
Fink’s comments align with securities regulations familiar to investors. Under the U.S. Securities Act, ETFs are allowed to hold stocks, bonds, and other securities approved by the SEC. Therefore, if approved by the SEC, fund managers may still offer an Ethereum-based ETF.
However, the implications of classifying Ethereum and other projects as securities pose a significant challenge for the crypto industry. Such a designation could require the respective foundations behind each public blockchain to assume responsibilities similar to those of public companies, including filing annual financial reports and fulfilling other related obligations. The crypto industry has strongly opposed this stance, as seen in Ripple’s ongoing case against the SEC.
The SEC is expected to announce its decision on the pending spot Ethereum-based ETF applications by May. It is important to note that this article provides information and should not be considered financial advice. The views expressed are the author’s own and do not reflect those of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.