BlackRock Files for Ethereum ETF
BlackRock, the world’s largest asset manager, has submitted an application for a spot Ethereum exchange-traded fund (ETF) with the United States Securities and Exchange Commission. This move comes after BlackRock filed for a spot Bitcoin ETF back in June, which is still under review by the SEC.
Major Boost for Crypto
The ETF, known as the iShares Ethereum Trust, aims to mirror the performance of the price of Ether (ETH), according to the Form S-1 filed with the Securities and Exchange Commission. The trust is a Delaware statutory trust that issues shares representing fractional undivided beneficial interests in its net assets, primarily consisting of ether held by a custodian on behalf of the Trust. The proposed ETF’s benchmark will be the CME CF of Bitcoin Reference Rate from administrator CF Benchmarks, a subsidiary of Kraken.
Bitcoin ETF Status
While BlackRock awaits approval for its spot Bitcoin ETF, other trading firms like Virtu Financial, Jane Street, and Jump Trading are in discussions with BlackRock to provide liquidity if it receives regulatory clearance from the SEC. The anticipation surrounding a potential approval of a spot Bitcoin ETF has already caused a considerable jump in Bitcoin’s price over the past month.
Rising Cryptocurrency Prices
Following BlackRock’s application for its Spot Ethereum ETF, both Bitcoin and Ethereum saw their prices turn positive. Bitcoin is currently trading at $36,300 and could look to break past the $38,000 mark. Meanwhile, Ethereum, which is trading around $1979, could move beyond the $2100 mark. Both cryptocurrencies experienced around a 4% jump following BlackRock’s announcement.
Hot Take: Potential Impact on Crypto Market
If approved, a combined authorization for both a spot Bitcoin ETF and a spot Ethereum ETF could trigger a bullish trend in 2024 and 2025. Institutional investors have likened Ethereum to silver and Bitcoin to gold. When the SEC approved BlackRock’s application for a Spot Gold ETF in 2004, gold prices surged by almost 350%. This suggests that similar approval for cryptocurrency-based ETFs could have significant implications for market trends.
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