BlackRock’s move to the Ethereum ETF has boosted the crypto market.
BlackRock Takes First Steps Into Ethereum ETF BlackRock's activity reflects the growing institutional interest in cryptocurrency investments. The SEC's cautious stance on crypto ETFs presents regulatory challenges despite growing industry enthusiasm.
On Thursday, the Delaware Division of Corporations website revealed the registration of the “iShares Ethereum Trust.” The move closely mirrors the actions taken by BlackRock in June, when the company filed for a Bitcoin ETF in a similar vein to the iShares Bitcoin Trust.
BlackRock has taken the first step to offer an Ether ETF for space. I checked the website myself. Beautiful by @SummersThings
— Eric Balchunas (@EricBalchunas) November 9, 2023
The iShares product, managed by BlackRock, is the leader in the exchange-traded funds sector, boasting more than $2.3 trillion in assets under management. However, the company has not yet made an official statement regarding its plans for the Ether ETF, which the cryptocurrency community and investors want to know more about the development.
Ethereum price increase
In response to news of BlackRock's intention to launch an Ethereum ETF, the price of Ethereum (ETH) surged 7%, reaching over $2,000.
This increase is reminiscent of Bitcoin's price movements when asset managers start tracking ETF launches in the summer.
The SEC's position on crypto ETFs
While BlackRock's registration signals the growing acceptance of cryptocurrencies in the financial industry, it's important to note that the US Securities and Exchange Commission (SEC) has yet to approve a Bitcoin ETF.
Historically, the SEC has taken a cautious stance against the creation of such funds. Notably, the SEC has previously blocked grayscale attempts to turn Bitcoin trusts into ETFs. However, a court decision in August rejected this decision.
While the SEC won't appeal the court's decision, it has the power to halt the Greyscale conversion or other Bitcoin ETF proposals for various reasons.
If the SEC approves Bitcoin ETFs, Ether ETFs are expected to follow suit as Ethereum is the second most popular cryptocurrency after Bitcoin.
