BlackRock is launching another fund on the Ethereum blockchain - what this means for the crypto industry

BlackRock is one of the most influential and conservative financial institutions, and its entry into the crypto market will be a strong signal for other institutional players

Among the main shareholders of BlackRock are leading US technology giants - $AAPL, $MSFT, Amazon and Google own a significant portion of the shares. The company also has a strong position in $NVDA and Broadcom, which are America's two largest semiconductor firms. Because of this, it would be a mistake not to take into account the importance of this corporation on the financial market. 

The launch of a blockchain-based fund by the world's largest investment company is a landmark event for the crypto market. This demonstrates the growing adoption of the technology by traditional financial giants. 

The market reaction was not long in coming 

The launch of the BlackRock fund caused a rise in the prices of cryptocurrency tokens associated with real asset (RWA) tokenization projects. This shows that the market positively perceives the arrival of such a giant and expects further development of this segment of the crypto market.

Like me, many analysts see great potential in tokenizing traditional assets on the blockchain. This can reduce barriers to entry into capital markets and improve efficiency and transparency of operations. The market for tokenized assets is projected to grow to trillions of dollars in the coming years. However, this direction is still at the initial stage of development.

While the prospects for asset tokenization look promising, there are also a number of potential challenges. It is necessary to ensure a reliable legal framework, protect investors, and resolve issues of financial regulation. After all, excessive growth of the market for tokenized assets without proper control can lead to the emergence of bubbles.

But overall, I still consider the launch of the BlackRock fund to be a positive event, demonstrating the growing integration of the cryptosphere and traditional finance. However, further development of asset tokenization will require the development of a clear direction and the creation of a reliable infrastructure to ensure stability and investor protection.

However, I did not want the attention of regulators to interfere with this promising direction. For healthy market growth, the SEC will only hinder it with its actions. This is not the first time that a regulator has interfered in the affairs of companies, leading to a fall in share prices and, as a consequence, to the withdrawal of investors.

This is obvious manipulation, which the Securities Commission in the person of Harry Gensler is so zealously fighting against. But it turns out to be quite the opposite.

Just from the latest: the SEC believes that the fines imposed on Ripple are fair and will be an effective incentive to comply with the laws. The regulator had previously ordered the company to pay a fine of approximately $2 billion.

It is clear why the head of the SEC complains that crypto companies avoid registration in order to hide their information. As soon as you become open to supervisory authorities, you will immediately fall under sanctions, fines and courts.

 

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