BlackRock Submits Application for an Ethereum-Based ETF to the SEC

BlackRock officially submitted an application for an Ethereum spot exchange-traded fund with the U.S. Securities and Exchange Commission.

BlackRock’s Move into Ethereum ETF

BlackRock, the world’s leading asset management firm, has officially filed with the U.S. Securities and Exchange Commission to create an Ethereum spot exchange-traded fund (ETF). This ETF, to be known as iShares Ethereum Trust, aims to mirror the price performance of Ethereum. The submission of the S-1 Form for this ETF by iShares, a part of BlackRock’s ETF range, marks a significant step in this direction.

This development follows the recent registration of the iShares Ethereum Trust with the Delaware State Department’s Division of Corporations. Additionally, a 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 has appointed Coinbase Custody Trust Company as the custodian for its proposed Ether ETF. Moreover, the ETF will use the CME CF Bitcoin Reference Rate from CF Benchmarks, a subsidiary of Kraken, as its benchmark, aligning this decision with the approach taken for its planned spot Bitcoin ETF.

This announcement had an immediate effect on the market, with the price of Ether (ETH) rising by about 2%, reaching approximately $2,080.

BlackRock is Waiting for SEC to Approve Its Bitcoin ETF Filing

In June, BlackRock submitted an application for its iShares Bitcoin Trust, stirring the market. The SEC is now assessing various spot bitcoin ETF proposals, including BlackRock’s. The ticker for this ETF, IBTC, has been listed on the Depository Trust & Clearing Corp’s site since August but gained attention recently.

Leading trading companies such as Jane Street, Virtu Financial, and Jump Trading are in discussions to back BlackRock’s potential spot bitcoin ETF with liquidity, contingent on regulatory consent. The anticipation of an approved bitcoin ETF has boosted Bitcoin’s price lately. BlackRock CEO Larry Fink noted that a recent spike in Bitcoin’s price, spurred by incorrect news about the ETF’s approval, highlights the significant interest in cryptocurrencies.

Post Views: 35