BlackRock, the world’s largest asset manager, has officially filed an application for an Ethereum exchange-traded fund (ETF). In their filing with the United States Securities and Exchange Commission (SEC), BlackRock has named the ETF iShares Ethereum Trust. iShares is the standard name for the asset manager’s ETF division.
According to the filing, the purpose of the iShares Ethereum Trust is to provide investors with an alternative method of gaining exposure to the price of ether, the cryptocurrency of the Ethereum blockchain. The ETF is designed to remove the complexities and operational burdens of directly investing in ether, while still reflecting its value. BlackRock states, “Although the Shares are not the exact equivalent of a direct investment in ether, they provide investors with an alternative method of achieving investment exposure to the price of ether through the securities market, which may be more familiar to them.”
The news of BlackRock’s filing had an immediate impact on the price of ether, which increased by 2% to $2,080 before stabilizing at its normal price point. This follows the recent social media speculation about BlackRock filing for an XRP ETF, which turned out to be false.
In addition to the Ethereum ETF, BlackRock is also pursuing a Bitcoin ETF along with twelve other applicants. If approved, these ETFs could mark a significant turning point for the crypto industry, as they would represent a broader interest from traditional financial institutions in the cryptocurrency space.
Delaware Department of State Division of Corporations
Prior to filing with the SEC, BlackRock had already filed the iShares Ethereum Trust with the Delaware Department of State Division of Corporations. This filing, along with a separate filing by Nasdaq for regulatory approval, indicates BlackRock’s commitment to launching the ETF.
To ensure the security and custody of the ETF’s assets, BlackRock has selected Coinbase Custody Trust Company as the custodian. Coinbase is a trusted name in the cryptocurrency industry and offers secure storage solutions for digital assets.
Spot Bitcoin ETF and Future Prospects
In addition to the Ethereum ETF, BlackRock is actively pursuing a spot Bitcoin ETF. The company is among several other applicants, including Grayscale Investments, VanEck Bitcoin Trust, Wise Origin Bitcoin Trust, and Invesco Gallery Bitcoin ETF, among others. Bloomberg ETF research analysts, Eric Balchunas and James Seyffart, have estimated a 90% chance of the spot Bitcoin ETF being approved by January 10th, 2024. However, the SEC’s approval window for these ETFs is set to close on November 17th, and it seems unlikely that approval will be granted in time.
