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.
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.
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.
