SEC Approves BlackRock's Launch of First Spot Bitcoin ETF, Sparks Speculation for Ether ETF
Summary:
The U.S. Securities and Exchange Commission has approved BlackRock and ten other major institutions to launch the country's first spot Bitcoin exchange-traded fund (ETF). This development has sparked anticipation regarding the potential approval of a spot Ether ETF later this year. With the Bitcoin ETF's success and BlackRock's impressive ETF approval history, veteran analyst Eric Balchunas predicts a 70% chance of a spot Ether ETF approval by May.
The U.S. Securities and Exchange Commission (SEC) has given the green signal to BlackRock, the 'juggernaut' of asset management, along with ten other major institutions, to initiate the country's premier spot Bitcoin exchange-traded fund (ETF), on January 10. BlackRock's bid for a spot in the Bitcoin ETF marketplace, originally filed in June, marked the commencement of the quest for the first such venture in the U.S. The fact that the world's biggest asset manager, with assets exceeding $8 trillion, stepped up to compete was a major boon for cryptocurrency enthusiasts. This, coupled with BlackRock's sterling reputation, having bagged a striking total of 575 ETF approvals against a single rejection prior to this initiative, was a major cause for confidence amongst analysts and market aficionados who predicted approval before it was even granted.
The successful launch of the spot Bitcoin ETF has ignited speculation among cryptocurrenct circles about the possibility of Ether (ETH), the second-largest cryptocurrency, earning its own ETF nod, potentially in May of this year. The SEC is already reviewing BlackRock's application for a spot Ether ETF, filed November last year, with a decision expected to be made by May. Enthusiasts are already entertaining the possibility of a spot Ether ETF coming to fruition later this year.
Veteran Bloomberg analyst Eric Balchunas, who predicted the SEC's approval of a spot Bitcoin ETF with 95% certainty beforehand, is now estimating a 70% probability of a spot Ether ETF getting approved by May.
The day the Bitcoin ETF got the go-ahead, the value of Ether leapt by 10%, despite Bitcoin maintaining its position and momentarily dropping below the $46,000 mark before bouncing back.
Published At
1/11/2024 12:04:00 PM
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