BlackRock, the world’s largest asset manager, has taken 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 that the move is “bearish” and “affects credibility.” Furthermore, he compared Ethereum and other altcoins to “scammers clawing at the door like a horde of zombies.”
BlackRock’s bold move into Ethereum
Earlier today, the asset management giant filed an S-1 form with the US Securities and Exchange Commission (SEC) for iShares Ethereum Trust, aiming to launch an Ether spot ETF.
This trust, a Delaware statutory entity, will issue shares representing undivided fractional interests in its net assets, primarily comprised of Ether held by a custodian.
The product aims to reflect the price performance of Ether before expenses and liabilities.
BlackRock’s foray into Ethereum marks a substantial change for the cryptocurrency that has yet to achieve regulatory clarity in the US.
Balancing Bitcoin and Ethereum
BlackRock CEO Larry Fink has previously noted global client interest in cryptocurrencies, a stance that has evolved significantly from his previous skepticism.
BlackRock also filed for a spot Bitcoin ETF earlier this year.
As evidenced by the recent introduction of the Ethereum ETF, their interest in cryptocurrencies is not limited to Bitcoin alone.
However, BlackRock’s recent presentation to highlight Ethereum alongside Bitcoin has sparked discontent among Bitcoin maximalists.
They see this move as a departure from the singular focus on Bitcoin that challenges the long-standing dominance of the first and largest cryptocurrency.
