- BlackRock Takes Early Steps toward Ethereum ETF
- BlackRock’s move signals growing institutional interest in cryptocurrency investments.
- The SEC’s cautious stance on cryptocurrency ETFs presents regulatory challenges despite growing enthusiasm in the industry.
On Thursday, Delaware’s corporate sector website unveiled the registration for the “iShares Ethereum Trust.” This move closely mirrors the action taken by BlackRock last June when it filed for a Bitcoin ETF with a similar announcement for the “iShares Bitcoin Trust.”
BlackRock has taken the first step toward applying for a spot Ether ETF. I just checked it directly on the website. good catch @SummerThings https://t.co/mLKIhKdiI6
— Eric Balchunas (@EricBalchunas) November 9, 2023
The iShares product managed by BlackRock boasts more than $2.3 trillion in assets under management and holds a dominant position in the exchange-traded fund sector. However, the company is yet to provide an official statement regarding its Ether ETF plans, which has left the cryptocurrency community and investors eager to know more about the development.
Ethereum price soars
The price of Ethereum (ETH) rose 7%, reaching a value of over $2,000, following news that BlackRock is potentially interested in launching an Ethereum ETF.
The surge is reminiscent of Bitcoin’s price action when asset managers began pushing for ETF launches in the summer.
SEC’s Position on Cryptocurrency ETFs
BlackRock’s registration signals the growing acceptance of cryptocurrencies within the financial industry, but it is important to note that the U.S. Securities and Exchange Commission (SEC) has not yet approved a Bitcoin ETF.
Historically, the SEC has maintained a cautious stance and opposed the creation of such funds. Notably, the SEC previously blocked Grayscale’s attempt to convert its Bitcoin trust into an ETF. But a court ruling last August overturned that decision.
The SEC did not appeal the court’s decision, but it retains the power to potentially halt Grayscale’s conversion or any other Bitcoin ETF offering for a variety of reasons.
If the SEC approves a Bitcoin ETF, it is expected that the Ethereum ETF could follow suit, considering that Ethereum is the second most popular cryptocurrency after Bitcoin.