Summary
Wall Street titan BlackRock is moving into crypto with its first tokenized fund on Ethereum, bringing legitimacy to the blockchain. This move is expected to encourage more traditional institutional customers to adopt on-chain funds. BlackRock’s CEO has spoken about the future of digital assets and is seeking approval for a spot Ethereum exchange-traded fund (ETF). The firm’s approval for a spot Bitcoin ETF has been successful, and now they are looking to offer an ETH product to customers. Other major fund managers are also seeking approval for a spot ETH ETF from the SEC.
Key Points
1. BlackRock’s move into crypto is seen as a positive development by analysts at global investment firm AllianceBernstein.
2. BlackRock recently announced its first tokenized fund, the USD Institutional Digital Liquidity Fund, running on the Ethereum blockchain, which brings legitimacy to Ethereum in the eyes of institutional investors.
3. The finance giant aims to offer its clients assets tokenized on Ethereum’s blockchain, including potentially launching a spot ETH exchange-traded fund (ETF) in the future, following the success of its spot Bitcoin ETF.