BlackRock CEO Larry Fink Bullish on Ethereum ETF: Heading Towards a Tokenized Future
The asset management giant BlackRock is exploring the tokenization future, with CEO Larry Fink recently expressing support for an Ethereum-based ETF. This move comes shortly after the successful listing of BlackRock's Bitcoin BTC spot ETF, signaling BlackRock's further dive into the cryptocurrency space.
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BlackRock's View on Ethereum ETF
During a CNBC interview, Larry Fink discussed the value of an Ethereum ETF, stating, "I think having an Ethereum ETF is valuable. These are all small steps towards tokenization, and I really believe this is where our future is heading." This statement came after the successful debut of BlackRock's Bitcoin ETF on the U.S. exchange.
The Launch of BlackRock iShares Bitcoin Trust
BlackRock's iShares Bitcoin Trust IBIT is one of the products approved by the U.S. Securities and Exchange Commission (SEC) and began trading on Thursday. On its first day, IBIT accounted for approximately $1 billion in trading volume, about a quarter of the total volume of $4.6 billion.
Overview of 11 Bitcoin spot ETF management fees, expected to raise $4 billion in funds on the first day
THE BITCOIN ETF FIRST DAY WAS TERRIBLY UNSUCCESSFUL.
Most people are reporting that $4,5BN was traded , they are not analyzing the data.
If you look at the numbers you will notice that;
– Total trade was $4,6bn
– GBTC was 50% of that $2,3bnThe GBTC numbers were majority… pic.twitter.com/3TIzGzcD1p
— Ran Neuner (@cryptomanran) January 12, 2024
BlackRock's Path to Tokenization
BlackRock may now be considering launching products for native tokens on the Ethereum blockchain as part of its ongoing tokenization journey. Tokenization refers to representing physical or digital assets in the form of blockchain tokens. Fink believes that tokenization can eliminate money laundering and corruption-related issues.
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Cryptocurrency: Currency or Asset
Fink further clarified that he does not consider cryptocurrency as a currency but as an asset class. He specifically mentioned that Bitcoin is an "asset class that can protect you from geopolitical risks." Fink compared Bitcoin to gold, emphasizing Bitcoin's close to maximum supply limit and contrasting it with gold's millennia-long status.
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