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Ethereum Gains BlackRock’s Favor Over Permissioned Blockchains
- Ethereum (ETH) is set for a bull run following BlackRock’s recent move towards permissionless blockchain.
- BlackRock recently launched its first tokenization project on the Ethereum blockchain.
The long-standing dispute between a non-restrictive, permissionless distributed ledger system and its permissioned counterpart entered into a panel discussion at Coinbase’s State of Crypto Summit 2024 on June 13, 2024. Here, Ethereum’s permissionless blockchain appeared to be emerged at the top with Samara Cohen, BlackRock’s Chief Investment Officer for ETFs and Index Investments, recounting the evolution of this technology in past years.
In your opinion, It was expected that permissioned private blockchains would take the lead a few years ago, however, public blockchains have defied all odds to take the lead in the ecosystem. Interestingly, after wider consultation and observation, experts have concluded that open source platforms like Ethereum are mostly preferred to avoid liquidity fragmentation and ensure broader and more efficient market participation.
BlackRock Takes Actions Towards Blockchain Without Permission
Samara Cohen’s recent remark comes just after BlackRock launched its first tokenization project on Ethereum Blockchain. In collaboration with the US company Securitize, BlackRock tokenized the “Institutional Digital Liquidity” fund, providing initial liquidity of $100 million. Our investigation shows that the fund primarily invests in cash, short-term debt securities, and US Treasuries, while leveraging Ethereum’s architecture to facilitate its operation.
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Blackrock CIO for ETF and index investing @Samaraepcohen said today at the Coinbase event that permissioned blockchains have lost and that traditional market participants are coalescing around open source #Ethereum for tokenization, so as not to fragment liquidity 👍
— Matthew Sigel, recovering CFA (@matthew_sigel) June 13, 2024
In line with the BlackRock CIO presentation, Hunter Horsley, CEO of Bitwise, confirmed that BlackRock has undertaken a notable shift towards public blockchain. Speaking about this, Horsley said that there is no debate as permissionless blockchain currently stands out among permissioned distributed ledger systems.
Experts Talk About the Impact of BlackRock’s Observation on Ethereum
According to Anthony Sassano, renowned angel investor, consultant and founder of Daily Gwei, Ethereum is obviously the future, as confirmed by Black rock. For him, this could trigger a bullish reaction and send ETH to a new level.
Read it seriously and digest it. An executive at BlackRock (the world’s largest asset manager) is telling you that the future is public blockchains – specifically, that the future is Ethereum! If that doesn’t make you bullish, nothing will.
Our review of the State of Crypto Summit 2024 took into account insights from key figures such as “Sandy Kaul, senior vice president of Franklin Templeton, and Alesia Haas, CFO of Coinbase.” According to their discussion, the year 2024 was highlighted as pivotal for the crucial integration of cryptocurrencies and traditional finance (TradFi) via Exchange Traded Funds (ETFs) and asset tokenization.
Furthermore, it was agreed that the integration of blockchain technology into mainstream financial practices has encouraged the acceptance of platforms that ensure transparency, accessibility and governance.
In reaction to this direction of development, analysts expect the price of ETH to rise and analyst Michaël van de Poppe predicts that the market will explode with the expectation that the Ether ETF will go live in early July. reported by Crypto News Flash.
Ethereum has seen a correction over the past three weeks, but slowly but surely, the momentum towards the Ethereum ETF price will begin to emerge. The expectation is that the ETF will become operational in July. I am betting on the ETH ecosystem and it holds a crucial support level.
At the time of writing, ETH was trading at $3,531, following a 0.28% increase over the past 24 hours and a 4.4% decline over the past seven days.