BlackRock CEO expresses support for Ethereum

In the latest installment of The Claman Countdown series hosted by Liz Claman, Gasparino noted that the US Securities and Exchange Commission is attempting to classify Ethereum as a security. This means that the regulator is seeking to exclude the second largest cryptocurrency from the category of goods.

When asking the BlackRock CEO about his views on Ethereum in terms of possible ETF approval, Gasparino was told that Fink did not believe that any potential designation of Ethereum as a security would have a negative impact on the cryptocurrency.

A FOX Business reporter clarified Fink's position by asking whether his firm would continue to promote an Ethereum spot ETF if the cryptocurrency is recognized as a security. Fink's response, while not entirely positive, did indicate BlackRock's interest in an Ethereum ETF.

For BlackRock, which is the most profitable issuer of Bitcoin spot ETFs, supporting a potential Ethereum spot ETF makes sense. During a speech on the Claman Countdown series, Fink noted that the Bitcoin ETF is the fastest-growing ETF in history, surpassing even gold ETFs in terms of returns.

Ethereum Spot ETF Approval Pending

In November, BlackRock filed an application for an Ethereum spot ETF with the US SEC, but the decision was delayed until March 10, 2024. Despite the passage of time, there has still been no response from the regulator.

With the growing debate over the classification of Ethereum as a security, there are concerns about the possibility of approval of an Ethereum spot ETF. SEC Chairman Gary Gensler has avoided discussing the topic, adding to observers' concerns. Additionally, Senators Jack Reed and LaFonza Butler urged Gensler to exercise caution in the crypto ETF approval process.

Such talk about Ethereum's classification could make it difficult for a spot ETF to be approved for the cryptocurrency.