BlackRock CEO Bullish Bitcoin Says ETH ETF Still Possible Even if SEC Brands ETH Security

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BlackRock CEO Larry Fink said he is “bullish on the long term viability of Bitcoin” and thinks an ETH exchange traded fund (ETF) may still be possible even if the U.S. Securities and Exchange Commission (SEC) brands ETH a security.

In an interview with Fox Business on Wednesday, BlackRock’s Fink was asked about the recently launched iShares Bitcoin Trust trading under the ticker symbol “IBIT” and the huge inflows.

“IBIT is the fastest growing ETF in the history of ETFs. Nothing has been getting assets as fast as IBIT,” responded Fink. 

BlackRock CEO Bullish Bitcoin

“I’m very bullish on the long-term viability of Bitcoin,” said Fink. “I mean, look as we’re creating a market that has more liquidity and more transparency — and I’m pleasantly surprised … I would never have predicted it before we filed it [IBIT] that we were going to see this type of retail [demand]” adds Fink.

The Fox Business host went on to ask Fink about the ETH ETFs and the SEC making lots of noise about declaring ETH a security which will take it out of the Bitcoin category as a commodity. How would this impact BlackRock’s ETH ETF application? 

Fink stressed he cannot discuss the BlackRock ETH ETF application in more detail but when pushed by the host about what will happen if the SEC brands ETH a security — it is still possible to start a ETH ETF?

“I think so,” responded Fink.

What Happens if the SEC Brands ETH a Security?

Currently the status of Ethereum is in limbo – ETH is not considered a security by the U.S. Securities and Exchange Commission (SEC) — but this could all change very quickly.

It has been widely reported that a number of U.S. based companies have received subpoenas attempting to label ETH as a security.

Ethereum is viewed as a decentralized cryptocurrency, rather than a security. However, regulatory agencies like the SEC continue to monitor the cryptocurrency space and may provide further guidance and sudden change or new rulings in the future. It’s essential to stay updated on regulatory developments.

SEC Will “Kick the Can Down the Road”

According to HANetf founder and co-CEO Hector McNeil the SEC reviewing ETH as a security is one way to delay its decision to approve ETH ETFs by “kicking the can down the road.”

If the SEC moves ahead to reclassify ETH as a security this would terminate any SEC applications with ETH ETFs in its current form, explains Laurent Kssis, head of CEC Capital.

“You cannot change an asset overnight from commodity to securities as the ETH futures are considered defacto non-security and not within the scope of the CFTC and not within its regulatory framework,” Kssis told Cryptonews in an interview.

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