In a significant move on November 9, BlackRock, the world’s largest asset manager, introduced a spot in the Ethereum ETF. The company formally registered the iShares Ethereum Trust fund with Delaware’s Division of Corporations on the specified date.
Simultaneously, Nasdaq submitted a proposal for a rule change to the U.S. Securities and Exchange Commission (SEC) in connection with BlackRock’s potential spot Ethereum ETF. This regulatory filing outlines Nasdaq’s intention to list and trade shares of the exchange-traded fund, pending approval.
ETF Consisting of ETH
According to Nasdaq’s filing, the underlying trust of the exchange-traded fund will consist of Ethereum (ETH) held by a custodian, with major cryptocurrency firm Coinbase fulfilling this role. The filing also addresses regulatory concerns, including the necessity for surveillance-sharing agreements and the potential risk of market manipulation.
The announcement has impacted the cryptocurrency market, with Ethereum (ETH) and Bitcoin (BTC) witnessing notable price increases since November 9. As of November 12, Ethereum (ETH) has surged by 8.5% over the past week, while Bitcoin has seen a 5.9% increase during the same period. Several other tokens have also experienced positive gains.
BlackRock’s recent filing for a spot Ethereum exchange-traded fund closely follows its application for a similar Bitcoin exchange-traded fund in June 2023, which is still pending approval. FOX Business correspondent Charles Gasparino has hinted at BlackRock’s confidence in obtaining approval for the Bitcoin ETF by January 2024.
The potential approval of any spot crypto exchange-traded fund in the U.S., whether for Bitcoin or Ethereum, would represent a significant milestone. Such ETFs enable traditional investors to invest indirectly in cryptocurrency, eliminating the need to navigate on-chain fees, retail exchanges, or standard crypto wallets.
While hopes are high for introducing a spot crypto exchange-traded fund, it’s important to note that the SEC has not yet approved any such ETF. However, the regulatory body has approved various crypto futures ETFs in the past.