- BlackRock CEO Lary Fink has suggested that the company is focused on launching an ETF to track the performance of Ether in the spot market
- The market is expecting the SEC to decide on spot Ether ETFs before the January 25 deadline. BlackRock, Fidelity, and Grayscale have proposed to list ETH-focused ETFs for trade in the US
- The Ethereum to Bitcoin ratio has reached its highest level since October 2023, at 0.060 ETH per BTC
- Bitcoin continues to decline despite the ETFs amassing $4.5 billion in trading volume on day one. Experts argue that the leading cryptocurrency could have topped its market dominance, giving way to the altcoin rally
Ether (ETH) has been enjoying a significant price hike since the Securities and Exchange Commission (SEC) green-lit spot Bitcoin ETFs in the US. Analysts expect that an ETF tracking the performance of Ether could soon be approved by the federal securities regulator.
BlackRock “Sees Value” In Launching Spot Ether ETFs, Ether Hits Highest Level Since October
The case for a spot ETF linked to the world’s largest cryptocurrency after Bitcoin (BTC) was strengthened after BlackRock CEO Larry Fink said that he “sees value” in making the product available to investors.
Fink shared his views in an interview with CNBC following the successful launch and first-day trading of BlackRock’s highly-anticipated spot Bitcoin ETF. The iShares Bitcoin Trust (IBIT) achieved a trading volume of $1.05 billion on January 11, surpassing the first-day volume of the ProShares Bitcoin Strategy ETF (BITO). BITO is a fund that launched in 2021 that tracks futures contracts linked to BTC.
The chief executive of the world’s largest asset management firm said the crypto-focused products are “stepping stones” towards tokenizing crypto assets and believes that is the direction BlackRock is headed.
However, Fink thinks that cryptocurrencies are going to be an asset class rather than a currency. He likened them to what gold represented over thousands of years. But unlike gold, Bitcoin’s supply is limited and the market is touching the ceiling of the amount of tokens that can be created, noted the billionaire.
Fink thinks that tokenization has the potential to address some common issues associated with cryptocurrencies such as money laundering and terrorist financing.
Leading Asset Managers Awaiting The SEC To Decide On Spot Ether ETFs By January 25
The $9 trillion asset manager made a filing with the SEC for an Ethereum spot ETF back in November. The proposal came five months after BlackRock made an application for its Bitcoin spot ETF in June 2023.
The fund, which falls under BlackRock’s iShares brand of ETFs will be called the iShares Ethereum Trust. The company has chosen Coinbase Custody as the custodian for its proposed Ethereum fund. Coinbase is also the custodian for the iShares Bitcoin Trust.
Digital asset manager Grayscale is also vying for an ETF tracking the Ethereum spot market and has already made a proposal with the SEC seeking permission to convert its Grayscale Ethereum Trust (ETHE) into a spot ETH ETF.
However, the SEC had postponed its decision on the funds, stating that it requires 45 days to review a rule change that would enable Grayscale to convert its Ethereum trust into a spot Ethereum ETF.
Apart from BlackRock and Grayscale, asset managers Fidelity and Hashdex have also filed for an Ethereum ETF. The SEC’s extended deadline for the products is now set for January 25, 2024.
The regulator approved Ether futures ETFs for trade in the US in October 2023, suggesting that a spot Ethereum ETF could be next. Analysts believe that the agency approving ETH futures ETFs was recognizing the second-largest cryptocurrency as a commodity.
Meanwhile, Ether has been performing well in the market in anticipation of the spot ETFs being green-lit. Following BlackRock’s backing, the ETH to BTC ratio has skyrocketed to the levels previously observed in October, with 1 ETH now equivalent to 0.060 BTC.
At the time of writing, Ether (ETH) is trading at $2,553 – down 1.8% in the last 24 hours.
Experts Say Bitcoin’s Dip Indicates The Onset Of A Bull Run For The Altcoin Market
The arrival of the much-anticipated spot Bitcoin ETFs was supposed to propel the price of BTC to new heights. Instead, the dominant cryptocurrency is losing its grip in the market.
The ETFs saw a combined $1.2 billion volume flood in during the first 30 minutes of trading on Thursday, with the Grayscale Bitcoin Trust (GBTC) setting the stage by achieving a record-breaking $2.3 billion in trading volume on day one.
Bitcoin also experienced a 5% price surge, getting pretty close to the $49,000 mark. According to Bloomberg analysts, this was the biggest debut for any ETFs in the market, indicating the serious appetite investors have for Bitcoin.
However, the world’s most valuable crypto asset has been steadily declining in the days since, which experts say is reminiscent of prior beginnings of a bull market.
Michael van de Poppe, the founder and CEO of MNTrading, noted in an X post that Bitcoin had “topped out” its market dominance before April’s halving event and that he expects to see Ethereum continuing to gain momentum. BTC might have already reached its cycle high on dominance and the altcoin bull run has begun, he pointed out.
The rest of the crypto community also shared the de Poppe’s opinion. Macroeconomist Jesse “Micro2Macr0” pointed to technical indicators that suggested a potential dip for Bitcoin. He estimates that BTC could drop down to at least the $44,000 range based on the bearish divergence and convergence on its daily time frame.
He even predicts a scenario where Bitcoin could bottom at $38,000, marked by oversold conditions and catalysts like the ETF trading and halving event. However, the analyst warned against panic selling, saying that investors could be missing out on the potential upswing “just months from now”.
Bitcoin started the year by declining to a low of $40,500 before embarking on a journey that saw it reach $48,900. However, the apex cryptocurrency has since been going to the downside, leaving investors with mixed signals.
At the time of writing, Bitcoin (BTC) is trading at $43,130 – down almost 7% in the last 24 hours.