BlackRock takes its crypto strategy to the next step with an Ethereum ETF filing
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Five months after filing a Bitcoin spot ETF and starting the ETF wave that is most likely to finally see approval, BlackRock decided that it is time to take its crypto strategy to the next level.
BlackRock expands its crypto strategy
One of the world’s largest asset managers filed its Ethereum ETF application last week, according to reports. The filing went through Nasdaq, and in it, BlackRock revealed its intention to create an ETF that uses Ethereum’s native token, ether (ETH).
The company previously created a corporate entity in keeping with the asset manager’s ETF division. Its name is iShares Ethereum Trust, and it was registered in Delaware.
As the news of the firm’s newest move emerged, Ethereum’s price reacted swiftly, jumping to a daily high of $2,132, which also allowed it to reach a six-month high. Over the weekend, however, the coin’s price slightly corrected, currently at $2,053. Even so, it is currently over 9% higher than a week ago.
Between November 6 and November 9, which is when the filing became known to the public, Ethereum price was trading sideways at around $1,900. Once BlackRock submitted its application, ETH price surged from $1,910 to $2,128 in a matter of hours, reaching its six-month high on Saturday, November 10.
The immediate price jump is fairly similar to the Bitcoin rally seen in June when BlackRock filed its Bitcoin spot ETF, which is still waiting for approval.
Details of the filing
As for the ETF filing, it states that Coinbase will be the custodian for the ETH held by the ETF if it should be approved. Meanwhile, the cash will be held by an unnamed third party. BlackRock also has a market-surveillance agreement with Coinbase, which is seen as a necessity for crypto ETFs to win the US SEC’s approval.
The filing says: “Either CME surveillance can detect spot-market fraud that affects both futures ETFs and spot exchange-traded products or that surveillance cannot do so for either type of product. Having approved ETH futures ETFs in part on the basis of such surveillance, the Commission has clearly determined that CME surveillance can detect spot-market fraud that would affect spot ETPs, and the Sponsor thus believes that it must also approve spot ETH ETPs on that basis.”
With the new filings, optimism regarding crypto adoption has once again climbed high. Galaxy Digital’s Mike Novogratz recently spoke to investors, stating that 2024 will be the year when the long-awaited institutional adoption of crypto assets will finally take off. He believes that 2024 will bring a slew of ETF applications’ approval and that the SEC is bound to give in. “It is now not a matter of if, but when,” said Galaxy Digital’s founder.
