BlackRock CEO Larry Fink has expressed confidence that the firm could proceed with an Ethereum ETF launch even if the SEC declares ETH security.
Earlier this month, reports emerged that the United States Securities and Exchange Commission (SEC) was pursuing a campaign to label Ethereum’s native asset, ETH, a security.
The implications of such a designation remain a topic of speculation for the crypto community, especially in connection with its impact on the pending applications for a spot-based Ethereum ETF.
Nonetheless, the CEO of the world’s largest asset management company, Blackrock, seems adamant that labeling ETH as a security will not prevent the company from launching an Ethereum-based ETF.
BlackRock is one of more than half a dozen fund managers seeking to roll out such a product for Ethereum after a resounding success with the Bitcoin ETFs.
Larry Fink shared his thoughts on the SEC’s rumored move while speaking in a recent Fox Business interview.
While being hesitant to comment on the subject in a broader scope, Fink told Fox Correspondent Charles Gasparino that a “security” designation for ETH is not going to “be that deleterious” for the prospects of an Ethereum-based ETF.
When quizzed further on whether BlackRock can launch the ETF even with ETH tagged as security, Larry Fink responded, “I think so, yeah.”
🚨NEW: Larry Fink on $ETH spot ETF: @CGasparino: There's a lot of noise about the SEC declaring ether a security which would take it out of the bitcoin category as a commodity. How does that translate into an ETF?
Fink: “I don’t think – look and I really can’t talk about this… https://t.co/si9ZiM6z30 pic.twitter.com/SVFcGvwRRg
— Eleanor Terrett (@EleanorTerrett) March 27, 2024
ETFs Also Hold Securities
Larry Fink’s latest comments will not surprise investors conversant with securities regulations. Under the U.S. Securities Act, ETFs can hold stocks, bonds, and other securities allowed by the SEC. Hence, the fund managers, if approved by the SEC, may still offer an Ethereum-based ETF.
However, the implications of a security tag for the Ethereum project and others that may come under such a listing constitute a major problem for the crypto industry.
The designation may require that the respective Foundations for each public blockchain assume a nearly identical role to public companies. This will include filing for annual financial reports and other similar obligations.
The crypto industry vehemently fought against such a stance, as evidenced by Ripple’s ongoing case against the SEC.
Meanwhile, May remains the deadline for the SEC to announce its decision regarding the pending spot Ethereum-based ETF applications.