Blackrock Expands Crypto Investment Opportunities with Ethereum Trust Filing
In a significant move for cryptocurrency investment vehicles, Blackrock Inc., through its subsidiary Ishares Delaware Trust Sponsor LLC, has submitted a 19b-4 form to the U.S. Securities and Exchange Commission (SEC) to list shares of the Ishares Ethereum Trust on the Nasdaq. This could provide U.S. investors with a regulated spot exchange-traded fund (ETF) to track the price of ethereum (ETH).
Trust Structure and Operation
The proposed Ishares Ethereum Trust will issue shares representing fractional interests in the trust’s net assets, primarily consisting of ethereum held by the Coinbase Custody Trust Company. The ETF is designed to offer investment exposure to ethereum’s price through the securities market, avoiding direct cryptocurrency asset investment challenges.
Net Asset Value and Shares Issuance
The net asset value (NAV) of the trust will be calculated based on the CF Benchmarks Index, using data from leading cryptocurrency exchanges. Shares will be continuously issued and redeemed in “baskets” by authorized broker-dealers, reducing volatility associated with over-the-counter ethereum funds.
Market Impact and Regulatory Context
Following the news, ethereum experienced a price surge of over 13% against the U.S. dollar. Blackrock’s filing comes after similar applications for spot ethereum ETFs by other firms. It also follows the SEC’s approval of ethereum-based futures ETFs and discussions about regulating spot bitcoin exchange-traded products.
Hot Take: Blackrock’s Move Reflects Growing Institutional Interest in Ethereum
This filing underscores growing institutional interest in offering regulated crypto investment options and signals potential market growth as major players like Blackrock enter the space.
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