BlackRock, the world’s largest asset manager, has taken yet another significant step into the cryptocurrency space with its recent filing for an Ethereum-focused exchange-traded fund (ETF).
However, this move has drawn criticism from prominent Bitcoin advocate and Blockstream CEO Adam Back.
Back, known for being mentioned in Satoshi Nakamoto’s white paper, took to social media to express his disapproval, stating the move is “bearish” and “impacts credibility.” He further likened Ethereum and other altcoins to “scammers clawing at the gate like a horde of zombies.”
BlackRock’s bold move into Ethereum
Earlier today, the asset management behemoth filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for the iShares Ethereum Trust, aiming to launch a spot Ether ETF.
This trust, a Delaware statutory entity, will issue shares representing fractional undivided interests in its net assets, primarily composed of Ether held by a custodian.
The product aims to mirror the performance of Ether’s price before expenses and liabilities.
BlackRock’s venture into Ethereum signifies a substantial shift for the cryptocurrency that is yet to attain regulatory clarity in the U.S.
Balancing Bitcoin and Ethereum
Larry Fink, CEO of BlackRock, has previously noted a global client interest in cryptocurrencies, a stance that has evolved significantly from his earlier skepticism.
BlackRock also applied for a spot Bitcoin ETF earlier this year.
As evidenced by the recent Ethereum ETF filing, its interest in crypto is not confined to Bitcoin alone.
However, BlackRock’s recent filing to spotlight Ethereum alongside Bitcoin has stirred discontent among Bitcoin maximalists.
They view this move as a deviation from the singular focus on Bitcoin that challenges the long-held dominance of the first and largest cryptocurrency.