BlackRock Pursues SEC Approval for Ethereum ETF Alongside Pending Bitcoin Application
BlackRock, the titan of asset management, has set its sights on Ethereum with the official filing for an Ethereum exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC). The ETF, known as iShares Ethereum Trust, marks a significant step in legitimizing and expanding the accessibility of Ethereum as an investment asset.
The filing, detailed in the Form S-1 submitted by iShares, a brand synonymous with BlackRock’s ETF products, aims to mirror the performance of Ethereum’s price. This strategic move, announced late Wednesday, underlines BlackRock’s recognition of the growing significance of cryptocurrencies in the investment landscape.
The journey toward this milestone began a week earlier when BlackRock established the iShares Ethereum Trust entity with the Delaware Department of State Division of Corporations. This was swiftly followed by Nasdaq’s filing for the proposed ETF, confirming BlackRock’s active involvement in the creation of an Ethereum-based investment product. The selection of Coinbase Custody Trust Company as the custodian for the proposed spot Ether ETF further solidifies BlackRock’s commitment to ensuring robust security measures for investors.
In a move reminiscent of its approach with Bitcoin, BlackRock’s choice of benchmark for the proposed ETF—the CME CF Bitcoin Reference Rate from CF Benchmarks, a subsidiary of Kraken—hints at a strategy aligned with its Bitcoin ETF endeavors. This echoes the methodology and selections made for its earlier proposed spot Bitcoin ETF, for which BlackRock filed in June of the same year.
BlackRock’s foray into the crypto ETF space has not gone unnoticed. The SEC, which is currently reviewing multiple spot Bitcoin ETF applications, including one from BlackRock, has been closely monitoring these developments. The asset manager’s earlier move to file for the iShares Bitcoin Trust had a substantial impact on the markets, and its Bitcoin ETF ticker, IBTC, has been quietly making its presence felt on the Depository Trust & Clearing Corp’s website since August.
The convergence of BlackRock’s established presence in traditional finance with its progressive steps into the crypto sphere underscores the shifting paradigms within investment circles. With a potential Ethereum ETF on the horizon, investors eagerly anticipate the SEC’s response and the implications this could have on crypto adoption and mainstream investment strategies.
- ProShares To Launch ProShares Short Ether Strategy ETF (SETH)
- ProShares Bitcoin Strategy ETF (BITO) Surpasses $1 Billion Mark Again, Reflecting Strong Investor Interest
- BlackRock Paves The Way: IShares Ethereum Trust Marks First Move Toward Ether ETF Filing