The Rise of Ether (ETH) ETF
BlackRock, the world’s largest asset manager, recently filed for a spot Ether (ETH) exchange-traded fund (ETF) on Nov. 9, following a previous filing for a spot Bitcoin ETF four months earlier. This move by BlackRock led to a significant surge in ETH prices, pushing them past the $2,000 mark for the first time in over a year. The intention to file for an Ether spot ETF had a bullish effect on the crypto market, allowing ETH to surpass the critical resistance of $2,000 for the first time in six months.
However, this positive momentum was short-lived as other altcoins also experienced substantial gains before a flash crash wiped out nearly $1 billion in open interest from the market within an hour. The sudden price fluctuations led to the liquidation of millions of long and short positions.
BlackRock’s ETF Filing and Reactions
After BlackRock’s 19b-4 filing with Nasdaq became public, confirming its ETH ETF filing, Nasdaq filed the 19b-4 form with the SEC on behalf of BlackRock for a proposed ETF called the “iShares Ethereum Trust.” This move signaled BlackRock’s intention to expand beyond Bitcoin with its ETF aspirations, sparking various reactions from the crypto community.
Bitcoin proponent Udi Wertheimer reacted to the news, saying “There is a second best,” referring to MicroStrategy CEO Michael Saylor’s belief that Bitcoin (BTC) is the only true asset and that there is no second best. Other crypto proponents expressed joy at growing institutional interest beyond Bitcoin. Raoul Pal stated that an ETH ETF is the “holy grail for asset managers” as they can capture yield and only give price performance to ETF holders.
Additionally, some individuals pointed out that BlackRock’s ETH ETF interest suggests that its spot Bitcoin ETF is likely to become a reality.
The Impact of ETH ETF
An independent Ethereum educator drew attention to the impact of an ETH ETF on ETH yields, claiming traders are going to “absolutely salivate over the real yield that a staked spot ETH ETF can offer.”
Hot Take: Implications of BlackRock’s ETH ETF Filing
BlackRock’s filing for an Ether (ETH) exchange-traded fund (ETF) marks a significant milestone in expanding institutional interest beyond Bitcoin. The anticipation of an ETH ETF has already triggered price movements and reactions within the crypto community. If approved, this development could have long-term implications for both Ethereum and the broader cryptocurrency market, potentially paving the way for increased adoption and investment opportunities.
By
By
By
By
By