- Larry Fink thinks a spot Ethereum ETF has value.
- ETH rose in dominance on the back of the spot BTC ETF approval.
The approval of a spot Bitcoin ETF has led to speculation about increased possibilities for other assets to have their spot ETFs, particularly Ethereum [ETH]. The CEO of BlackRock recently expressed this sentiment during an interview.
A matter of when for a spot Ethereum ETF
BlackRock CEO Larry Fink recently expressed his perspective on ETFs. He said there is “value in having an Ethereum ETF” in a recent CNBC interview following the approval of the spot BTC ETFs.
Notably, BlackRock itself has secured approvals for a spot BTC ETF.
On the first trading day, the spot BTC ETF recorded a substantial volume of around $4.6 billion. The potential for institutions to pursue a spot ETH ETF is buoyed by the absence of any regulatory issues between Ethereum and the SEC.
Unlike certain exchanges and crypto assets that have faced SEC charges in the past, ETH has had no such issues.
Furthermore, ETH holds the second-largest market capitalization, as per CoinMarketCap. This makes it an attractive asset for institutions to consider offering as an ETF.
Ethereum rally cut short post-ETF
An examination of the daily timeframe chart for Ethereum showed a significant rally leading up to the approval of the spot BTC ETF. The positive trend continued on the first day of ETF trading, approaching the overbought zone.
However, this upward trend paused on 12th January, marked by a decline of over 3%. Initially poised to break the $2,700 price range, ETH retraced back to around $2,500.
As of this writing, ETH was trading at around $2,540, reflecting a slight increase of over 1%.
Source: Trading View
Ethereum takes space in the crypto discourse
An examination of Ethereum’s social dominance on Santiment showed its dominance in discussions within the crypto space.
On 10th January, the social dominance rose to over 9.4%. This signified that ETH accounted for more than 9% of the overall discourse in the space. However, as of this writing, the dominance has reduced to around 7%.
Source: Santiment
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The chart showed a noteworthy correlation between the increase in Ethereum’s social dominance and its price increase.
Additionally, ETH played a key role in leading the broader altcoin rally, further showing its significance within the crypto space.
Source: https://ambcrypto.com/blackrock-ceo-backs-ethereum-etf-says-there-is-value/