BlackRock files for Ethereum ETF with SEC, mirroring its Bitcoin ETF efforts and boosting crypto market interest.
In a recent move within the cryptocurrency market, BlackRock, the globe’s leading asset manager, has taken a bold step forward by submitting an application to the United States Securities and Exchange Commission (SEC) for the creation of a spot Ethereum exchange-traded fund (ETF). This development marks a considerable expansion in BlackRock’s involvement in the digital currency space.
The proposed ETF, named iShares Ethereum Trust, aims to mirror the price performance of Ethereum’s native cryptocurrency, ether. This initiative follows closely on the heels of BlackRock’s recent establishment of the iShares Ethereum Trust entity with the Delaware Department of State Division of Corporations. Notably, this progression occurred just hours before Nasdaq processed BlackRock’s filing, a clear indication of BlackRock’s commitment to launching a spot ether ETF.
BlackRock appointed Coinbase Custody Trust Company to serve as the custodian for this ambitious Ethereum project. Moreover, the CME CF Bitcoin Reference Rate, administered by CF Benchmarks, a Kraken subsidiary, has been chosen as the benchmark for this forthcoming ETF. This decision mirrors the approach BlackRock adopted for its proposed spot Bitcoin ETF.
Following the announcement, ether’s value saw an immediate boost, soaring nearly 2% to approximately $2,080. Meanwhile, BlackRock’s Bitcoin ETF initiative is still pending approval from the SEC. Filed earlier in June, the iShares Bitcoin Trust stirred the markets significantly and is currently under review, along with several other spot Bitcoin ETF applications.
Crypto Market Anticipation
The anticipation surrounding BlackRock’s potential entry into the spot Bitcoin ETF market has already triggered conversations among major trading firms like Jane Street, Virtu Financial, and Jump Trading. These firms are reportedly preparing to offer liquidity for BlackRock’s proposed Bitcoin ETF, contingent upon its approval. The market has responded positively to these developments, with Bitcoin experiencing a notable rally over the past month.
BlackRock CEO Larry Fink recently highlighted the market’s eagerness for crypto-related products. He referenced a surge in Bitcoin’s price, spurred by an erroneous report of the ETF’s approval, as evidence of the market’s latent demand for cryptocurrency investments.
Adding to the intrigue, a filing for an entity named “iShares XRP Trust” was recently registered in Delaware, initially linked to BlackRock. However, BlackRock has since clarified that it has no connection with this filing, which is currently under investigation by the Delaware Department of Justice.