Larry Fink, CEO of BlackRock, the world’s largest asset management company, stated in an interview yesterday that he sees the value of an Ethereum ETF. Shortly after, ETH surged past $2,700, reaching a new high in over a year, but then quickly dropped by 10%.
Background:
It’s Ethereum’s turn! Spot ETF expected to be listed this year. Bloomberg analyst: SEC has implicitly recognized ETH as a commodity.
BlackRock CEO sees the value of an Ethereum ETF:
Against this backdrop, Larry Fink, CEO of BlackRock, stated in a recent interview with CNBC that he sees the value of launching an Ethereum (spot) ETF.
Status of Ethereum spot ETF applications:
Currently, there are 7 Ethereum spot ETF applications awaiting approval from the SEC, including BlackRock, Fidelity, Grayscale, VanEck, Ark/21Shares, Invesco/Galaxy, and Hashdex.
Meanwhile, the deadline for the final approval decisions on VanEck, ARK 21Shares, and Hashdex Ethereum spot ETFs by the SEC is set for May 2024, while the other applications will be decided in the next 6-8 months.
It’s worth mentioning that Bloomberg ETF analyst James Seyffart previously stated at the beginning of the year that when the SEC approved 9 Ethereum-related futures ETFs last year, it implicitly recognized Ethereum as a commodity. This means that the first Ethereum spot ETF is expected to be listed this year.
Image: 7 Ethereum spot ETFs awaiting approval from the SEC. Source: Bloomberg.
ETH surges past $2,700 and then drops sharply:
As for the price of ETH, coincidentally during the time when BlackRock’s CEO made his comments, ETH experienced a surge starting from yesterday evening and reached a high of $2,717.32 around 23:00, marking a new high since May 9, 2022.
However, selling pressure quickly emerged, causing a 10% drop and briefly falling below $2,500. At the time of writing, ETH is trading at $2,525, with a 7.5% decline in the past 24 hours and a reversal of the gains from the past 2 days.
With the pullback in Bitcoin prices and the anticipation of the SEC approving the Ethereum spot ETF in May, as well as the upcoming London upgrade, whether it can continue to have a positive impact on ETH prices remains to be seen.
Images: ETH price. Source: Binance Spot.
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