Asset manager BlackRock has filed for a spot Ethereum (ETH) exchange-traded fund (ETF), propelling the price of ETH past $2,100.
BlackRock has yet again made waves in the exchange-traded fund (ETF) space by filing for a spot Ethereum (ETH) ETF. On Thursday, BlackRock submitted a proposal with the Nasdaq stock exchange outlining its plans for an “iShares Ethereum Trust.”
ETH Gains 10% Thanks to BlackRock
If approved, the iShares Ethereum Trust would allow investors to gain exposure to ETH’s price movements via a traditional stock exchange without directly owning the asset. Approving a spot ETF, whether it be Bitcoin or Ethereum, would pave the way for billions of dollars of new investment in the crypto space.
Ethereum’s price rocketed 10% in response to the news and now trades above $2,100.
Source: CoinMarketCap
According to reports by Reuters, BlackRock registered the iShares Ethereum Trust as a Delaware statutory trust on Thursday. At the same time, Nasdaq filed a proposal to list and trade shares of the trust. The world’s largest asset manager pulled a similar move earlier this year when it registered a Bitcoin trust in the same way. A week later, BlackRock filed an application with the US Securities and Exchange Commission (SEC) to launch a spot Bitcoin ETF.
Senior ETF Analyst for Bloomberg, Eric Balchunas, shared the update on X (formerly Twitter).
BlackRock has made first step towards filing for a spot Ether ETF. I just confirmed on the website myself. Nice catch by @SummersThings https://t.co/mLKIhKdiI6
— Eric Balchunas (@EricBalchunas) November 9, 2023
According to the filing, the fund’s shares would trade under the “ETH” ticker and would closely track the price of ETH held by the trust. BlackRock’s iShares subsidiary would act as the sponsor. The filing also noted that US-based crypto exchange Coinbase would be the custodian of the ETH held by the ETF, and an unnamed third party would hold its cash.
BlackRock has not yet commented on the trust’s creation, and it is not yet clear when the firm intends to apply to the SEC for approval of the ETF formally.
Grayscale, ARK Invest, and VanEck Apply for Spot ETH ETF
In September, ARK Invest and asset manager 21Shares applied for the first spot Ethereum ETF in the US. The “ARK 21Shares Ethereum ETF” was filed with the SEC and named Coinbase as its custodian. Asset manager VanEck also applied for a spot ETH ETF.
In October, Grayscale Investments announced it applied with the SEC to convert its existing Ethereum Trust into a spot Ethereum ETF.
Grayscale’s CEO, Michael Sonnenshein, shared the news on X and commented:
"At Grayscale, our unwavering commitment is to offer investors transparent and regulated access to crypto through product structures that are familiar.
As we file to convert ETHE to an ETF, the natural next step in the product’s evolution, we recognize this as an important moment to bring Ethereum even further into the U.S. regulatory perimeter."
Bitcoin Spot ETF Approval Drags On
While the SEC has yet to approve one of the numerous spot bitcoin ETF filings, the market is abuzz amid speculation that approval may come soon. The securities agency has been lagging in deciding due to concerns over the potential risks of crypto investments. Grayscale recently called on the SEC to green light ETF application after it secured a courtroom win. In August, a judge ruled in favour of Grayscale and said the SEC lacks substantial grounds to delay or deny its Bitcoin ETF conversion proposal.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
