Bitrabo Editorial
BlackRock, the largest asset manager globally, shifts its focus to public blockchain networks like Ethereum, discarding permissioned alternatives. This revelation was made during the “Beyond Bitcoin ETFs – What’s Next on the Institutional Roadmap?” panel at Coinbase’s State of Crypto Summit 2024.
BlackRock’s Endorsement of Ethereum
BlackRock’s Chief Investment Officer of ETF and Index Investments, Samara Cohen, emphasizes the superiority of public blockchains such as Ethereum over private permissioned ones, stating a shift in opinion from previous years. This switch aligns with the industry’s growing preference for open-source platforms to maintain market efficiency and liquidity.
The move echoes BlackRock’s recent Ethereum tokenization project launched in March in partnership with Securitize. This initiative involved tokenizing the “Institutional Digital Liquidity” fund on the Ethereum blockchain, injecting $100 million of liquidity denominated in USD Coin (USDC) into the platform.
Hunter Horsley, CEO of Bitwise, affirms BlackRock’s transition to public blockchains, concluding the long-standing discussion between permissioned and permissionless blockchains, favoring the latter as the clear choice.
Renowned investor Anthony Sassano lauds BlackRock’s endorsement of public blockchains, particularly Ethereum, as a significant milestone for the industry.
Insights from financial leaders like Sandy Kaul of Franklin Templeton and Alesia Haas, CFO of Coinbase, emphasize the growing integration of cryptocurrencies and traditional finance sectors in 2024 through avenues like ETFs and asset tokenization.
Overall, the trend of incorporating blockchain technology into mainstream finance through transparent and accessible platforms like Ethereum signifies a pivotal shift. The acknowledgment of Ethereum’s advantages over permissioned blockchains by institutions like BlackRock signals a notable progression in the industry.
Current ETH price stands at $3,522.
Image created with DALL·E, chart from TradingView.com