BlackRock’s Ethereum ETF Plans Propel ETH Value Over $2,100
Asset management giant, BlackRock, moves forward with Ethereum ETF plans, sparking a surge in Ethereum's value past the $2,100 mark.
Global asset management leader, BlackRock, has intensified its plans to release an exchange-traded fund (ETF) for Ethereum, according to a proposal outlined in a filing with the SEC on Thursday. The announcement saw the price of Ethereum leap by 10 percent, breaking past the $2,100 threshold, a peak not witnessed since April. ETH is up more than 30% for the month, marking a substantial 79% increase from one year ago.
In the wake of the filing, BlackRock also registered a trust for Ethereum in Delaware. This move is seen by analysts as a precursor to applying for regulatory approval of an ETF. An Ethereum ETF would provide retail investors the opportunity to gain exposure to the second-largest cryptocurrency by market capitalization without the necessity to directly hold the asset. This could potentially unlock billions of dollars in new investment.
The proposal suggests that the fund’s shares would trade under the ticker “ETH” and would closely follow the price of Ethereum held by the trust, with BlackRock’s subsidiary, iShares, acting as the sponsor.
While it remains unclear when BlackRock plans to formally apply to the Securities and Exchange Commission (SEC) for ETF approval, the regulatory agency has previously rejected several spot Bitcoin ETF proposals due to concerns about potential manipulation. However, the SEC recently approved the first U.S. Bitcoin futures ETFs, which is seen as a step towards acceptance of funds holding digital assets themselves. Last month, the agency also allowed the first Ethereum futures ETFs to begin trading.
BlackRock’s proposed iShares Ethereum Trust ETF represents a continued increase in interest from the asset management giant in the crypto space. According to the filing, the proposed ether ETF would use Coinbase Custody Trust Company as custodian, and it will use the CME CF Ether-Dollar Reference Rate – New York Variant.
Other asset managers, including Grayscale, Ark Invest, ProShares, and Valkyrie, have also filed applications for spot ether ETFs. Approval could take months, given the SEC’s history of delaying existing applications for proposed spot bitcoin funds multiple times. Nonetheless, the recent approval of futures-based ether ETFs suggests that the path may be clearing for spot ether products.
As part of Nasdaq’s filing, it referenced a recent win for Grayscale Investments where three judges ruled that the SEC has to re-review the firm’s bid for a spot bitcoin ETF and addressed the agency’s differential treatment of spot and futures ETFs. These developments have sparked optimism in the industry for an eventual spot bitcoin product, and possibly an Ethereum equivalent.
