BlackRock Registers Ethereum Trust in Delaware
Wall Street giant BlackRock has registered an iShares Ethereum Trust in Delaware. The registration does not necessarily mean that BlackRock has filed an application with the Securities and Exchange Commission to offer an Ethereum ETF, but it is worth noting that the $8.5 trillion asset manager submitted a similar registration before applying for a Bitcoin ETF.
A spokesperson for BlackRock declined to comment on the registration when contacted by Decrypt via email.
Delaware’s Corporate-Friendly Environment
Many companies choose to incorporate in Delaware due to its corporate-friendly environment, which includes tax benefits and legal protections. In fact, more than 60% of Fortune 500 companies are registered there.
BlackRock’s History with SEC and ETFs
When BlackRock filed its iShares Bitcoin Trust application in June, experts pointed out that the asset manager has rarely been rejected by the SEC. However, this does not guarantee approval. Analysts noted that the SEC has a window of just over a week when it could hypothetically approve 12 Bitcoin ETF applications starting today.
Rising Interest in Ethereum ETFs
There is increasing interest from potential issuers in getting an Ethereum ETF listed. Grayscale, owned by Digital Currency Group, recently filed to convert its Grayscale Ethereum Trust into a spot ETF. Additionally, the first Ethereum futures trusts began trading on the Chicago Board Options Exchange (CBOE) in October.
Ethereum’s Price Surge
On the news of BlackRock’s registration, Ethereum’s price surged, surpassing $2,000 for the first time since July according to CoinGecko. This indicates growing investor interest and confidence in Ethereum as an investment opportunity.
Hot Take: Growing Momentum for Crypto ETFs
The registration of an iShares Ethereum Trust by BlackRock signals increasing momentum for cryptocurrency-based ETFs in traditional financial markets. As interest in both Bitcoin and Ethereum continues to grow, it is likely that more investment firms will seek approval for similar products, further integrating cryptocurrencies into mainstream investment portfolios.
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