BlackRock has officially submitted an application for an Ethereum spot exchange-traded fund to the U.S. Securities and Exchange Commission.
BlackRock’s Transition to Ethereum ETF
BlackRock, the world’s leading asset management company, has officially applied to the U.S. Securities and Exchange Commission to establish an Ethereum spot exchange-traded fund (ETF). Known as the iShares Ethereum Trust, this ETF aims to reflect the price performance of Ethereum. The filing of the Form S-1 for this ETF by iShares, part of the BlackRock ETF family, represents an important step in this direction.
This development follows the recent registration of iShares Ethereum Trust with the Delaware State Corporation Division. Additionally, the Nasdaq filing supporting this ETF further highlights BlackRock’s commitment to establishing a spot Ethereum ETF.
Strategic Moves and Market Impact
In a strategic move, BlackRock appointed Coinbase Custody Trust Company as custodian of the proposed Ether ETF. Additionally, the ETF will use the CME CF Bitcoin Reference Rate from Kraken subsidiary CF Benchmarks as its benchmark, aligning this decision with the approach taken for the planned spot Bitcoin ETF.
The announcement had an immediate impact on the market, sending the price of Ether (ETH) up about 2% to around $2,080.
BlackRock awaits SEC approval for its Bitcoin ETF filing.
Last June, BlackRock shook the markets by submitting an application for the iShares Bitcoin Trust. The SEC is currently evaluating various spot Bitcoin ETF proposals, including one from BlackRock. The ETF’s ticker, IBTC, has been listed on the Depository Trust & Clearing Corp site since August, but has recently gained attention.
Major trading firms such as Jane Street, Virtu Financial, and Jump Trading are in discussions to back BlackRock’s potential spot Bitcoin ETF with liquidity, subject to regulatory consent. Bitcoin prices have risen recently on anticipation of an approved Bitcoin ETF. BlackRock CEO Larry Fink noted that the recent surge in the price of Bitcoin due to incorrect news about the ETF’s approval highlights significant interest in the cryptocurrency.
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