Ethereum’s designation as a security won’t hurt spot ETH ETFs’ chances of approval, says BlackRock CEO Larry Fink

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BlackRock CEO Larry Fink believes approval of spot Ethereum (ETH) exchange-traded funds (ETFs) could still happen even if the top altcoin is considered a security.

In a new interview on FOX Business, Fink say that the chances of approval of pending applications to launch spot ETH ETFs would not be adversely affected if the US Securities and Exchange Commission (SEC) designates Ethereum as a security.

“I do not think so [security] appointment will be so damaging.”

BlackRock is among the companies with pending filings with the SEC to launch a spot ETH ETF following the successful launch of spot Bitcoin (BTC) ETFs in January.

The SEC considers Bitcoin a commodity, not a security. Gary Gensler, chairman of the SEC, has not said whether he believes ETH is a security, but he has suggested that many digital assets besides Bitcoin could be considered securities.

Reportedly, the SEC is moving to designate ETH as a security. Meanwhile, the US Commodity Futures Trading Commission (CFTC) has indicated that ETH is a commodity.

When asked if BlackRock could still launch a spot ETH ETF even if Ethereum is considered a security, Fink says it is possible.

He also says demand for BlackRock’s iShares Bitcoin Trust (IBIT) spot BTC ETF product is exceeding his expectations.

“I am very optimistic about the long-term viability of Bitcoin. We are now creating a market with more liquidity and more transparency. And I’m pleasantly surprised, and I never would have predicted it before we submitted it, that we would see this kind of demand in retail…

IBIT is the fastest growing ETF in the history of ETFs. Nothing in the history of ETFs has acquired assets as quickly as IBIT.”

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