BlackRock has filed a prospectus with the US
Securities and Exchange Commission (SEC) for a spot Ether exchange-traded fund
(ETF). The filing followed the registration of the name of the new offering and
the application for the filing of an application seeking approval of
the spot ETF by Nasdaq.
According to a report by Coindesk, the price of Ether (ETH) surged 2% to $2,080 following the filing of the S-1 form by the
asset management giant. This reaction underscored the market’s heightened
sensitivity to ETF-related updates. It echoed the recent trend where court
rulings against SEC rejections of spot crypto ETF applications have ignited optimism for future approvals.
BlackRock’s foray into the cryptocurrency realm
extends beyond Ethereum, with the company currently awaiting the approval of
the SEC regarding the potential listing of its spot Bitcoin ETF.
In June, BlackRock filed for iShares Bitcoin Trust ETF with the SEC. This step followed earlier rejections
of spot Bitcoin ETF applications by the regulator. While launching its bid,
BlackRock emphasized its commitment to democratizing investments in Bitcoin for
institutional and retail investors.
Confirmed. Here’s a screenshot of this mornings iShares Ether ETF S-1 filing. Not a shocker tho as they had already filed 19b-4 for it last week. https://t.co/QSXxagwC99 pic.twitter.com/UxJ7y4YC8j
— Eric Balchunas (@EricBalchunas) November 16, 2023
Notably, BlackRock’s proposed ETF aims to leverage
custodian services by Coinbase to safeguard Bitcoins held by the Trust.
Besides that, the company intends to utilize the CME CF Bitcoin Reference Rate
to track Bitcoin prices. This metric is derived from a group of selected global cryptocurrency
exchanges by CF Benchmarks, a subsidiary of Kraken.
While several companies, including Grayscale,
VanEck, and WisdomTree, have previously applied for spot Bitcoin ETF approval,
the SEC has remained cautious, rejecting multiple applications.
Shifting Crypto Investment Landscape
BlackRock is not the only asset management firm seeking the approval of a spot Ether ETF in the US. In August, Valkyrie
Investments, headquartered in Tennessee, initiated the process of launching an
Ethereum Strategy ETF. Different from conventional ETFs,
this venture targets Ether futures and a diverse array of collateral
assets.
Meanwhile, the second quarter of 2023 witnessed a substantial
surge in institutional investments within the cryptocurrency space,
specifically in Bitcoin and Ether futures. This was boosted by the desire to
manage risks and navigate market volatility.
BlackRock has filed a prospectus with the US
Securities and Exchange Commission (SEC) for a spot Ether exchange-traded fund
(ETF). The filing followed the registration of the name of the new offering and
the application for the filing of an application seeking approval of
the spot ETF by Nasdaq.
According to a report by Coindesk, the price of Ether (ETH) surged 2% to $2,080 following the filing of the S-1 form by the
asset management giant. This reaction underscored the market’s heightened
sensitivity to ETF-related updates. It echoed the recent trend where court
rulings against SEC rejections of spot crypto ETF applications have ignited optimism for future approvals.
BlackRock’s foray into the cryptocurrency realm
extends beyond Ethereum, with the company currently awaiting the approval of
the SEC regarding the potential listing of its spot Bitcoin ETF.
In June, BlackRock filed for iShares Bitcoin Trust ETF with the SEC. This step followed earlier rejections
of spot Bitcoin ETF applications by the regulator. While launching its bid,
BlackRock emphasized its commitment to democratizing investments in Bitcoin for
institutional and retail investors.
Confirmed. Here’s a screenshot of this mornings iShares Ether ETF S-1 filing. Not a shocker tho as they had already filed 19b-4 for it last week. https://t.co/QSXxagwC99 pic.twitter.com/UxJ7y4YC8j
— Eric Balchunas (@EricBalchunas) November 16, 2023
Notably, BlackRock’s proposed ETF aims to leverage
custodian services by Coinbase to safeguard Bitcoins held by the Trust.
Besides that, the company intends to utilize the CME CF Bitcoin Reference Rate
to track Bitcoin prices. This metric is derived from a group of selected global cryptocurrency
exchanges by CF Benchmarks, a subsidiary of Kraken.
While several companies, including Grayscale,
VanEck, and WisdomTree, have previously applied for spot Bitcoin ETF approval,
the SEC has remained cautious, rejecting multiple applications.
Shifting Crypto Investment Landscape
BlackRock is not the only asset management firm seeking the approval of a spot Ether ETF in the US. In August, Valkyrie
Investments, headquartered in Tennessee, initiated the process of launching an
Ethereum Strategy ETF. Different from conventional ETFs,
this venture targets Ether futures and a diverse array of collateral
assets.
Meanwhile, the second quarter of 2023 witnessed a substantial
surge in institutional investments within the cryptocurrency space,
specifically in Bitcoin and Ether futures. This was boosted by the desire to
manage risks and navigate market volatility.
