BlackRock Files for Ether ETF
On November 15, BlackRock, the world’s largest asset manager, officially filed for a spot Ether exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC). The iShares Ethereum Trust aims to reflect generally the performance of the price of Ether and appoints Coinbase as the custodian for the underlying ETH.
This move comes nearly a week after BlackRock registered the iShares Ethereum Trust with Delaware’s Division of Corporations and almost six months after it filed its spot Bitcoin ETF application. The company’s earlier filing for a spot Bitcoin ETF demonstrated the growing interest of institutions in the crypto market, and it now joins a growing list of institutions filing for a spot ETH ETF.
Filing for a spot ETF is a two-step process where the ETF issuer must get SEC approval from the Trading and Markets division on its 19b-4 filing and the Corporate Finance division on its S-1 filing or prospectus. This follows an acknowledgment by the SEC of Grayscale Investment’s application to convert its Ethereum trust into an ETF.
The Future of Crypto Spot ETFs
Market pundits and ETF analysts have predicted that there is a high chance of approval for a spot Bitcoin ETF by early 2024, while approval for the spot ETH ETF might come after that. The rush of institutional investment in cryptocurrency-based spot ETFs comes as the crypto market is in a recovery phase, having gained a significant chunk of lost ground from the last bear market.
Hot Take: BlackRock’s Entry into Ether ETF Market
BlackRock’s filing for an Ether exchange-traded fund (ETF) reflects its growing interest in the cryptocurrency market. With institutions like BlackRock joining in, it signals increasing acceptance and adoption of cryptocurrencies among traditional financial institutions. The move also indicates growing confidence in Ethereum as an investment asset. As more institutional players enter this space, it could pave the way for greater mainstream acceptance and integration of cryptocurrencies into traditional investment portfolios.
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