BlackRock, the world’s leading asset management giant, has made a significant move by officially submitting an application for a spot Ethereum exchange-traded fund (ETF) to the United States Securities and Exchange Commission (SEC).
This ETF, the iShares Ethereum Trust, aims to closely mirror the performance of Ethereum, as indicated in the Form S-1 filing submitted to the SEC by iShares yesterday (Nov 15). It’s worth noting that the iShares brand is closely associated with BlackRock’s suite of ETF offerings.
The filing of Form S-1 follows BlackRock’s earlier registration of the iShares Ethereum Trust entity with the Delaware Department of State Division of Corporations, an action that raised speculation. Nasdaq then filed for the proposed ETF, further confirming BlackRock’s commitment to bring a spot Ether ETF to market.
BlackRock has chosen Coinbase Custody Trust Company to serve as the custodian for its proposed spot Ether ETF. Additionally, the asset manager has opted for the CME CF Bitcoin Reference Rate from CF Benchmarks, a Kraken subsidiary, as the ETF benchmark. These selections mirror those made for BlackRock’s proposed spot Bitcoin ETF.
In response to this development, the price of Ethereum experienced a notable increase, surging by nearly 2% to $2,080.
“Today’s S-1 filing shows that traditional financial players remain committed to bringing ETF products to US investors. As we’ve seen with the BTC ETFs, these processes take a bit of time, but all journeys start with the first steps, and these are great initial ones for Ethereum.” Sergito, senior director at Fireblocks, told nft now.
Other ETF Prospects
Crypto prices have been exhibiting heightened sensitivity to developments related to ETFs, especially following recent court rulings that went against the SEC’s rejection of spot cryptocurrency ETF applications. These rulings have fueled optimism in the market, raising expectations for potential approvals.
Earlier this week. An incident occurred when a fake registration for an iShares ETF linked to XRP sent the cryptocurrency surging by an impressive 10%. An entity named “iShares XRP Trust” was registered in Delaware, with initial speculations linking it to BlackRock. However, BlackRock swiftly distanced itself from this registration, emphasizing that it had no involvement in the matter. The Delaware Department of Justice has now initiated an investigation into the situation.
Currently, the SEC is actively reviewing several applications for spot Bitcoin ETFs, including one from BlackRock. The anticipation of a spot Bitcoin ETF approval has also played a significant role in the recent rally in Bitcoin’s price. Last month, BlackRock’s CEO, Larry Fink, highlighted how a false news report regarding the approval of their spot ETF had triggered a surge in Bitcoin prices, underscoring the burgeoning interest in the world of cryptocurrencies.