Ethereum Gains BlackRock’s Favor Over Permissioned Blockchains

• Ethereum (ETH) is tipped for a bullish run following the recent shift of BlackRock towards permissionless blockchain.

• BlackRock recently launched its first tokenization project on the Ethereum blockchain. 

The longstanding argument between a non-restrictive, permissionless distributed ledger system and its permissioned counterpart crept into a panel discussion at Coinbase’s State of Crypto Summit 2024 on June 13, 2024. Here, Ethereum’s permissionless blockchain seemed to have emerged at the top with Samara Cohen, the Chief Investment Officer of BlackRock for ETF and Index Investments, narrating the evolution of this technology from years back. 

According to her, private permissioned blockchains were expected to lead a few years back, however, public blockchains have defied all odds to take the lead in the ecosystem. Interestingly, experts have concluded after a broader consultation and observation that open source platforms like Ethereum are mostly preferred to avoid fragmenting liquidity and ensure wider and more efficient market participation. 

BlackRock Takes Action Towards Permissionless Blockchain

Samara Cohen’s recent remark comes soon after BlackRock launched its first tokenization project on the Ethereum blockchain. In collaboration with a US-based firm Securitize, BlackRock tokenized the “Institutional Digital Liquidity” fund, bringing an initial liquidity of $100 million. Our investigation shows that the fund primarily invests in cash, short-term debt securities, and US Treasury bonds while leveraging Ethereum’s architecture to facilitate its operation. 

Blackrock CIO of ETF & Index Investments @Samaraepcohen said today at the Coinbase event that permissioned blockchains have lost, & 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 presentation of BlackRock’s CIO, Hunter Horsley, CEO of Bitwise has confirmed that BlackRock has embarked on a remarkable shift towards public blockchain. Speaking on this, Horsley stated that there is no debate as permissionless blockchain currently stands tall among permissioned distributed ledger systems. 

Experts Speak on the Impact of BlackRock’s Remark on Ethereum

According to Anthony Sassano, a renowned angel investor, advisor and founder of The Daily Gwei, Ethereum is obviously the future as confirmed by BlackRock. To him, this could trigger a bullish reaction and send ETH to a new height. 

Seriously read and digest this. An executive at BlackRock (the largest asset manager in the world) is telling you that the future is public blockchains – specifically, that the future is Ethereum! If this doesn’t make you bullish, nothing will.

Our review of the State of Crypto Summit 2024 took notice of the insights of key figures such as “Sandy Kaul, Senior Vice President at Franklin Templeton, and Alesia Haas, CFO of Coinbase.” Per their discussion, the year 2024 was underscored as pivotal for the crucial integration of cryptos and Traditional Financial (TradFi) via Exchange Traded Funds (ETFs) and the tokenization of assets.

Also, it was agreed that integrating blockchain technology into mainstream financial practices has encouraged the acceptance of platforms that provide transparency, accessibility, and governance. 

In reaction to this development direction, analysts expect the ETH price to surge with Analyst Michaël van de Poppe predicting the market to explode with the expectation of Ether ETF going live in early July as reported by Crypto News Flash. 

Ethereum has corrected in the past three weeks, but slowly but surely, the momentum toward listing the Ethereum ETF will start to emerge. The expectation is that the ETF will go live in July. I’m betting on the ETH ecosystem and it holds a crucial support level.

At press time, ETH was trading at $3,531 after surging by 0.28% in the last 24 hours and declining by 4.4% in the last seven days. 

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