BlackRock Files for Spot Ethereum ETF
BlackRock has made headlines by filing for a spot Ethereum (ETH) exchange-traded fund (ETF). The company submitted a proposal with the Nasdaq stock exchange for an “iShares Ethereum Trust.”
ETH Gains 10% Thanks to BlackRock
If approved, the iShares Ethereum Trust would allow investors to gain exposure to ETH’s price movements via a traditional stock exchange without directly owning the asset. The news caused Ethereum’s price to soar 10%, now trading above $2,100.
According to reports by Reuters, BlackRock registered the iShares Ethereum Trust as a Delaware statutory trust on Thursday. This move follows BlackRock’s previous registration of a Bitcoin trust earlier this year.
The filing states that the fund’s shares would trade under the “ETH” ticker and would closely track the price of ETH held by the trust. BlackRock’s iShares subsidiary would act as the sponsor. The filing also noted that US-based crypto exchange Coinbase would be the custodian of the ETH held by the ETF, and an unnamed third party would hold its cash.
Grayscale, ARK Invest, and VanEck Apply for Spot ETH ETF
In September, ARK Invest and asset manager 21Shares applied for the first spot Ethereum ETF in the US. Asset manager VanEck also applied for a spot ETH ETF. In October, Grayscale Investments announced it applied with the SEC to convert its existing Ethereum Trust into a spot Ethereum ETF.
Bitcoin Spot ETF Approval Drags On
The SEC has yet to approve any spot Bitcoin ETF filings amid speculation that approval may come soon. Concerns over potential risks of crypto investments have caused delays in approving these applications. Grayscale recently called on the SEC to green light their ETF application after securing a courtroom win in August.
Hot Take: BlackRock’s Move Signals Growing Crypto Investment
BlackRock’s filing for a spot Ethereum ETF signals growing interest and investment in cryptocurrencies. If approved, this ETF could bring billions of dollars of new investment into the crypto space, highlighting increasing acceptance and demand for digital assets within traditional financial markets.
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