BlackRock Files for Ethereum ETF
BlackRock, the largest asset manager globally, has submitted a registration filing with the U.S. Securities and Exchange Commission (SEC) for an Ethereum exchange-traded fund (ETF). This filing comes after the company outlined its proposal for the ETF earlier in the month and registered a trust for Ethereum in Delaware.
The Trust seeks to reflect the performance of the price of ether, with Coinbase acting as the custodian for its crypto holdings. This move follows BlackRock’s application for a spot Bitcoin ETF in June 2023, which caused a surge in the crypto market and pushed Bitcoin’s price to nearly $38,000.
At present, Ethereum’s price is at $2,069, showing a 2.7% increase on the day. The SEC has not confirmed whether it considers Ethereum a security or a commodity. However, previous statements from former SEC officials have indicated that Ethereum is considered “sufficiently decentralized” to not qualify as a security.
Hot Take: BlackRock’s Expansion into Crypto ETFs
BlackRock’s move to file for an Ethereum ETF signals further mainstream adoption of cryptocurrencies and blockchain technology. As the largest asset manager globally, their entry into this space could potentially open doors for other traditional financial institutions to follow suit. The SEC’s stance on classifying Ethereum as a security or commodity remains uncertain, but BlackRock’s confidence in filing for an ETF suggests growing acceptance of cryptocurrencies within the financial sector.
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