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Blackrock Makes the Case for Ethereum ahead of ETHA ETF launch

Crispus Nyaga
Crispus Nyaga
Crispus Nyaga
Author:
Crispus Nyaga
Writer
Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.
July 23rd, 2024
Editor:
Joseph Alalade
Joseph Alalade
Editor:
Joseph Alalade
News Lead and Editor
Joseph is a content writer and editor who has actively participated in crypto for over 6 years. He enjoys educating others about Web3 and covering its updates, regulatory developments, and exciting stories.

Blackrock, the biggest asset manager in the world with over $10.6 trillion in assets, has made its case for why Ethereum matters.

In a statement, Jay Jacobs, the company’s head of thematics and alternative ETFs, said that Ethereum is important because of its utility.

He then pointed out that Bitcoin’s top appeal among investors is its scarcity. There will only be 21 million coins ever. Over 19.72 million coins have already been mined, and millions more have been lost, making it a rare asset.

https://x.com/EricBalchunas/status/1815525501152178615

Ethereum has grown over the years and currently dominates key industries like stablecoins, decentralized finance (DeFi), gaming, and non-fungible tokens. In a statement, Santiment noted that the Ethereum ecosystem led by a 2x margin over BNB in terms of development activity.

https://x.com/santimentfeed/status/1815529947299275011

Other data shows that Ethereum has a total value locked (TVL) of over $59.9 billion, giving it a dominance of almost 60%.

It is also the biggest player in the stablecoin industry, with over $79 billion worth of tokens like Tether and USDC. Stablecoins have become highly popular in money transfers because they are often fast, cheap, and private.

This has led Ethereum to be a highly profitable network, with over $1.7 billion in fees year-to-date. Its fees are significantly higher than those of other cryptocurrencies like Bitcoin, Tron, and Lido Finance.

Jacobs’s statement came as the crypto industry anticipates the upcoming approval of spot Ethereum ETFs by companies like Invesco, Blackrock, Franklin Templeton, and Invesco. Blackrock has been highly successful in this industry as the iShares Bitcoin Trust (IBIT) has become the biggest Bitcoin ETF in the world with over $19 billion in assets.

Blackrock hopes to replicate this success in the Ethereum market. The company may also apply for more altcoin ETFs like Chainlink, Solana, and Cardano.

Moreover, his statement came a few days after Larry Fink, Blackrock’s CEO, explained why he had changed his view about Bitcoin. While he was initially skeptical, he now believes that Bitcoin is a good asset as concerns about US debt rose.

Contributors

Crispus Nyaga
Writer
Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.