BlackRock’s Ethereum ETF Registration and the Crypto Industry
The new Ethereum ETF will be tracking the Ethereum spot price and will soon be accessible to both institutional and retail investors in the United States. This registration marks a positive development for the crypto industry, indicating that large institutional investors such as BlackRock are increasingly comfortable with crypto assets. It also suggests that the SEC is open to approving crypto ETFs, provided they meet specific regulatory standards.
The iShares Ethereum Trust has just been registered in Delaware.
For context, BlackRock’s iShares Bitcoin Trust was registered in a similar manner 7 days before they filed the ETF application with the SEC. Details below.
[announcement: I’m moving to @SynopticCom soon] pic.twitter.com/IYafIaxMzA— Summers (@SummersThings) November 9, 2023
SEC’s Stance on Crypto ETFs
The SEC’s previous reluctance to approve crypto ETFs due to concerns about market manipulation and fraud has softened recently as the asset class has matured and become more regulated. The recent approval of Bitcoin futures ETFs was a significant step forward for the crypto industry as it paved the way for potential approval of spot Bitcoin ETFs which track the price of Bitcoin directly.
Potential Impact of BlackRock’s Ethereum ETF Approval
The approval of BlackRock’s Ethereum ETF would be a major milestone for the industry as it would signal that Bitcoin and other crypto assets are legitimate investment products. Additionally, it would likely lead to a significant increase in institutional investment in Bitcoin and other crypto assets, thereby boosting market liquidity and making it more attractive to retail investors.
BREAKING$ETH BREAKS $2,000
→ $9 trillion asset manager BlackRock registers Ethereum Trust in Delaware pic.twitter.com/eFP05uviFi
— CABANA (@Cabanaandre1) November 9, 2023
Hot Take: The Significance of BlackRock’s Ethereum ETF Registration
The registration of an Ethereum ETF by BlackRock is a positive development for the crypto industry. It reaffirms a promising trajectory between BlackRock and the SEC and hints at potential approval of their Bitcoin ETF. Furthermore, it is expected to attract increased institutional investment in Bitcoin and other crypto assets, marking a significant victory for the industry.
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