According to Blockworks, BlackRock, the world's largest asset manager, is set to further its involvement in the tokenization sector. This follows its lead in a $47 million funding round for Securitize, a firm specializing in the tokenization of physical and traditional financial assets. The two companies have previously collaborated, with BlackRock launching its first tokenized fund, the BlackRock USD Institutional Digital Liquidity Fund, in March. This fund offers an alternative method for earning US dollar yields and is available to qualified investors via Securitize Markets.

Tokenization has been gaining traction among fintech firms and traditional finance giants, who note that blockchain technology can enhance transparency and reduce costs. BlackRock's CEO, Larry Fink, has referred to tokenized securities as 'the next generation for markets.' Joseph Chalom, BlackRock’s global head of strategic ecosystem partnerships, echoed this sentiment, stating that tokenization could significantly transform capital markets infrastructure. Chalom, who has now joined Securitize's board of directors, described the investment in Securitize as a step forward in BlackRock's digital assets strategy.

Other participants in the funding round included Hamilton Lane, ParaFi Capital, and Tradeweb Markets. Hamilton Lane, a private markets investment firm, had earlier in January 2023 made one of its equity funds available through a Securitize feeder fund tokenized on Polygon.

Amendments are slowing down SEC decisions for both BlackRock and Grayscale, despite experts indicating the agency’s limited involvement. The SEC will delay rulings on BlackRock and Grayscale’s spot Ethereum (ETH) exchange-traded fund (ETF) applications, each valued at $3,229.

The SEC announced delays in deciding on Grayscale’s application and in making amendments to BlackRock’s application just hours after postponing a decision on Franklin Templeton’s proposed spot Ethereum ETF.

SEC Extends Deadline for Grayscale’s ETH Trust Conversion
The Securities and Exchange Commission (SEC) was set to announce its decision regarding the conversion of Grayscale’s ETH Trust to a spot ETH exchange-traded product on NYSE Arca by April 24. However, this deadline has now been pushed back by 60 days to June 23.
In its notice on April 23, the SEC stated that it requires more time to evaluate the proposed rule change, especially after Grayscale’s filing of Amendment No. 1, which was published on April 2. Although the amendment strengthened Grayscale’s arguments, it did not substantially alter its proposal.
Additionally, the SEC is expected to reach a decision on the Franklin Templeton application by June 11.
On the same day, April 23, Grayscale filed an S-3 form for a Grayscale ETH Trust and an S-1 for a Grayscale ETH Mini Trust, indicating further developments in the cryptocurrency investment realm.

SEC notice of filing of BlackRock amendment. Source: sec.gov
Spot ETH ETF Applications Face Delays and Uncertainty
In November, BlackRock filed an S-1 application for a spot Ethereum (ETH) ETF. However, the decision on BlackRock’s application was postponed in March. Later that same month, the Securities and Exchange Commission (SEC) delayed decisions on Hashdex and ARK 21 spot ETH ETF applications by two months, now expected in late May.
On April 19, BlackRock submitted an amendment to its application. In response, the SEC issued a notice on April 23 outlining the changes introduced in the amendment, primarily focusing on the creation and redemption of shares. The notice also extends the comment period on the proposal for 21 days after its publication in the Federal Register. However, no new deadline for an SEC decision was specified.
Also Read:   Cardano Shows Signs of Rebounding to $80 and Beyond

Source: Eleanor Terrett
Observers suggest that the SEC’s apparent disengagement with spot ETH ETF applications may indicate a looming rejection.
In a separate development, Grayscale secured a victory over the SEC in August when an appeals court partially overturned the SEC’s rejection of its application to convert its over-the-counter Grayscale Bitcoin Trust (GBTC) into a listed Bitcoin (BTC) ETF.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
 

#EThereum #ETHETF #ETH #ETF #Blackrock

Blackrock’s head of digital assets has revealed that bitcoin is the overwhelming favorite cryptocurrency for the asset management firm’s clients. “And then a little bit Ethereum, and very little everything else,” he added. Blackrock’s spot bitcoin exchange-traded funds (ETF), the Ishares Bitcoin Trust (IBIT), has amassed approximately 243K bitcoins since its launch.
Blackrock’s Head of Digital Assets Discusses Client Demand for Bitcoin
Blackrock’s head of digital assets, Robert Mitchnick, talked about bitcoin and demand for his firm’s spot bitcoin exchange-traded fund (ETF), the Ishares Bitcoin Trust (IBIT), at Bitcoin Investor Day in New York City on Friday.
During a fireside chat, Mitchnick revealed that bitcoin is the cryptocurrency of most interest to Blackrock’s clients, stating:
For our clients, bitcoin is overwhelmingly the number one priority. And then a little bit Ethereum, and very little everything else.
IBIT continues to grow its BTC holdings since its launch in early January. The fund’s latest data shows holdings of approximately 242,830 BTC, representing a notional value of about $15.8 billion. According to Bitmex Research, IBIT added 297.5 BTC to its holdings on Friday, bringing the spot bitcoin ETF’s total holdings as of March 22 to more than 243K BTC.
During an interview with Yahoo Finance at the event, Mitchnick described Blackrock’s approach to bitcoin and crypto more broadly: “This has been a multi-year journey for us, starting back really 2016 kind of time frame … you’ve seen our strategy kind of evolve with that to take us to the point where we are today.”
Noting that Blackrock’s clients are “at all stages of the journey,” he explained that some clients “already hold bitcoin, sometimes positions in multiple crypto assets.” He added: “They’re looking for our perspectives on market dynamics and what we’re seeing in terms of portfolio construction and other considerations.” On the other hand, some clients are new to crypto, he further shared, adding that they “want to understand kind of the fundamentals and the technology and how it works. And so we have those conversations across the spectrum.”
When asked about what Blackrock is hearing from clients and what they are interested in, Mitchnick replied: “What we’re seeing is that investors are resoundingly choosing IBIT for bitcoin access. That’s a combination of investors who are new to bitcoin and those who maybe held exposure in a different form historically.” He emphasized:
What our clients, I think, are most focused on is trying to understand risks, upside, downside, thoughts about portfolio construction, how to think about the risk in a larger diversified portfolio context. So those are the kinds of discussions we’re having a lot.
$BTC #BTC #Bitcoin #Blackrock