The world’s largest asset manager, BlackRock, and 13 other institutional giants got the nod from the United States Securities and Exchange Commission (SEC) to launch the first spot Bitcoin exchange-traded funds (ETF) in the United States on Jan. 10.
BlackRock’s entry in the spot Bitcoin ETF race gave crypto proponents a new sense of optimism because the firm is the world’s largest asset manager, with over $8 trillion in assets under management and an impeccable ETF approval record.
BlackRock had a record of 575 approvals to one ETF rejection in its history, and with spot BTC approval, the record is now 576-1. This was one of the key reasons that made analysts and market pundits sure about a potential approval even before the SEC decided.
BlackRock submitting their ETF application pic.twitter.com/rJNPCXwr0v
— rwlk (@sherlock_hodles) January 10, 2024
Following the approval of spot BTC ETFs, the crypto community has already started speculating about the potential approval of an Ether (ETH) ETF approval in May.
Related: SEC solicits comments on Fidelity’s spot Ether ETF application
BlackRock filed for a spot Ether ETF in November 2023. The SEC deadline for a decision to approve or deny the application is May 23, and many crypto proponents believe a spot Ether ETF could be approved.
BlackRock doesn't lose. Looking like August for $ETH ETF. https://t.co/rlJmE3RIRZ pic.twitter.com/G2sbA0Mysl
— fewture (@fewture) January 11, 2024
Bloomberg senior analyst Eric Balchunas, who gave a 95% chance that the spot BTC ETF applications would be approved in the lead-up to the SEC’s decision on Jan. 10, believes there is a 70% chance of an Ether ETF approval in May.
New deadline to obsess over just dropped
— Will (@WClementeIII) January 10, 2024
May 23rd is the final deadline for decision on VanEck’s spot ETH ETF pic.twitter.com/dgi5EVbPeQ
The price of Ether shot up 10% on BTC ETF approval day. However, BTC traded in the same range throughout the day and dipped below $46,000 momentarily before recovering.