BlackRock files spot Ethereum ETF with Nasdaq

w – images.unsplash.com

BlackRock, the world’s largest asset management firm, filed for an Ethereum ETF (Exchange Traded Fund) with Nasdaq on Thursday. The filing, subject to acknowledgment and approval from the Securities and Exchange Commission (SEC), categorizes the ETF as Commodity-Based Trust Shares.

Nasdaq filed the 19b-4 form with the SEC on behalf of BlackRock for a proposed ETF named the “iShares Ethereum Trust.”

This move indicates that BlackRock aims to broaden its ETF offerings beyond Bitcoin. Anticipation from eager crypto investors had built up for hours before this move.

The filing echoed signs similar to those seen with the spot Bitcoin ETF. On November 9, it was revealed that BlackRock had registered the corporate entity iShares Ethereum Trust in Delaware, suggesting the possibility of an upcoming filing for a spot Ethereum ETF.

In the months leading to the filing, BlackRock and other financial firms had expressed interest in cryptocurrency-backed ETFs. According to Bloomberg ETF analyst James Seyffart, at least five firms, including VanEck, ARK 21Shares, Invesco, Grayscale and Hashdex, are vying for SEC approval for a spot Ethereum ETF.

An Ethereum ETF would enable retail investors to invest in the second-largest cryptocurrency without directly owning it. It could attract billions of dollars in new investment.

The filing mentions that the fund’s shares would trade under the ticker “ETH” and closely follow the price of Ethereum held by the trust. BlackRock’s subsidiary iShares would serve as the sponsor.

The timeline for BlackRock’s formal application to the SEC for ETF approval remains unclear. The SEC has previously rejected several proposals for spot Bitcoin ETFs due to concerns about potential manipulation.

The SEC recently approved the first U.S. Bitcoin futures ETFs, marking a step toward the acceptance of funds holding digital assets.

The SEC approved the first leveraged Bitcoin futures ETFs on June 23, including the Volatility Shares 2x Bitcoin Strategy ETF (BITX), which was launched on the Chicago Board Options (CBOE) BZX Exchange on June 27. Last month, the SEC permitted it as the first Ethereum futures ETF to commence trading.

Ethereum’s price surged 10 percent after BlackRock’s filing, surpassing $2,100, a level not seen since April. This current price is also the highest ETH has reached since May 2022.

The numbers represent that ETH has risen over 30 percent this month and is up 85 percent compared to one year ago.

BlackRock expects SEC approval for Spot Bitcoin ETF by January, report says

Charles Gasparino of Fox Business Network has reported that BlackRock is confident the SEC will approve its Spot Bitcoin ETF by January 2024.

Gasparino shared the news in a social media post, saying, “Scoop: @BlackRock growing increasingly confident @SECGov will approve its BTC ETF by January, sources tell @FoxBusiness more now w@LizClaman,”

BlackRock applied for the first Spot Bitcoin ETF in the U.S. on June 15. This move was anticipated by many, along with the Grayscale submission.

Despite this information, BlackRock is currently dealing with a considerable amount of controversy. Earlier on Thursday, a group of pro-Palestine activists staged a protest at its headquarters in Manhattan.

“BREAKING: Pro-Palestine activists are occupying the lobby of BlackRock headquarters in NYC, a major investor in Israeli apartheid. The protesters have unfurled a banner with the names of over 4,000 Palestinian children murdered by Israel in the last month,” a social media account shared the news.