Ethereum rises after BlackRock files for ETF

Ethereum, the market’s second-largest cryptocurrency, soared to surpass the $2,000 mark after BlackRock, the world’s largest asset manager, filed a preliminary application to establish an Ether Exchange Traded Fund (ETF).

Earlier this year, BlackRock filed to similarly create a Bitcoin ETF, and just days later filed with the U.S. Securities and Exchange Commission (SEC).

The request shows that the American giant plans to launch a so-called ETF iShares Ethereum Trust and after the documents were revealed, Ether’s price rose 12% to trade at $2,115, its highest value in 22 months. However, BlackRock declined to comment on its plans to launch the ETF.

Ethereum bullish blackrock etf
Ethereum bullish blackrock etf

Mistress of the world

Blackrock is the largest asset manager in the world and is therefore also called ‘the owner of the world’. With approximately $9 trillion in assets under management, the company’s involvement in the cryptocurrency market carries significant weight.

The company’s Bitcoin ETF is currently under evaluation by the SEC and could be approved at any time, raising expectations about its potential Ethereum ETF.

To date, about 12 companies have signed up to create Bitcoin spot ETFs or convert existing products into spot ETFs, sparking a frenzy in the cryptocurrency market.

According to the filing, the proposed ETF will be listed on the Nasdaq under the brand name iShares, BlackRock’s ETF division that oversees more than $2.3 trillion in assets and the largest provider of ETFs in the world.

The company’s plan to launch the ETF was confirmed by a statement from Nasdaq, with the application now awaiting regulatory approval. Before the official announcement, market analysts discovered the application for the “iShares Ethereum Trust” registered in the state of Delaware.

Ethereum ETF should only appear after Bitcoin ETF

If the Ethereum ETF is approved, the iShares Ethereum Trust would allow investors to gain exposure to the digital currency through a traditional exchange without directly owning the asset.

The adoption of a spot ETF, be it Bitcoin or Ethereum, would pave the way for billions of dollars of new investment in the cryptocurrency market.

According to the document, the fund’s shares would trade under the ticker “ETH” and track the price of ETH held by the trust. BlackRock’s iShares subsidiary would serve as the sponsor.

The document also reveals that Coinbase, the largest cryptocurrency broker in the US, would be the custodian of the ETH held by the ETF.

BlackRock has not yet commented on the trust’s formation and it is unclear when the company plans to formally ask the SEC for approval of the ETF.

While Bitcoin ETF approval will likely be approved first, an Ethereum ETF could come soon if the SEC gives the green light, which could send the cryptocurrency market through an unprecedented rally.

Eric Balchunas, an ETF expert at Bloomberg, commented on the issue, saying he sees no reason to justify the SEC’s denial. However, he assumed that regulatory validation for spot Ethereum ETFs will undoubtedly happen next for Bitcoin ETFs, which he said is expected to happen early next year.

Source: Live Coins