- BlackRock, the world’s largest asset manager, has officially filed for a spot Ethereum ETF with the U.S. Securities and Exchange Commission (SEC).
- The firm previously filed for a Bitcoin ETF in June, and major trading firms are reportedly preparing to provide liquidity if it gets SEC approval.
A Monumental Step in Crypto Integration: BlackRock’s Ethereum ETF Filing
BlackRock, recognized globally as the largest asset manager, has taken a significant leap into the crypto space by filing for a spot Ethereum exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). Named the iShares Ethereum Trust, this ETF aims to
“reflect generally the performance of the price of ether,”
as detailed in the Form S-1 filed by iShares, BlackRock’s ETF brand. This filing comes on the heels of BlackRock registering the iShares Ethereum Trust entity with the Delaware Department of State Division of Corporations, highlighting the firm’s commitment to integrating Ethereum into mainstream finance.
📣 BlackRock's #Ethereum ETF takes a big leap forward! 🚀
— Collin Brown (@CollinBrownXRP) November 16, 2023
Coinbase and Kraken Subsidiary as Key Players
In a strategic move, BlackRock has appointed Coinbase Custody Trust Company as the custodian for the proposed Ethereum ETF. Furthermore, for benchmarking, the CME CF Bitcoin Reference Rate from CF Benchmarks, a Kraken subsidiary, has been selected. These choices mirror those made for BlackRock’s proposed spot Bitcoin ETF, showcasing a consistent approach in BlackRock’s crypto initiatives.
Market Response and Bitcoin ETF Anticipation
The announcement of BlackRock’s Ethereum ETF filing sparked a notable reaction in the crypto market, with the price of Ethereum (ETH) surging nearly 2% to around $2,080. Concurrently, BlackRock’s Bitcoin ETF application, filed earlier in June, is still under SEC review. The anticipation surrounding this application has stirred significant interest from prominent trading firms like Jane Street, Virtu Financial, and Jump Trading, who are reportedly gearing up to provide liquidity for BlackRock’s Bitcoin ETF, subject to regulatory approval.
BlackRock’s Cryptocurrency Vision
Despite recent rumors about an “iShares XRP Trust” attributed to BlackRock, the firm clarified that this filing has no connection to them, and the matter is currently being investigated. BlackRock’s CEO, Larry Fink, previously commented on the high demand in the crypto sector, evidenced by a significant market rally following a false report of BlackRock’s Bitcoin ETF approval. This incident underscores the growing mainstream interest in cryptocurrencies.
Implications for the Crypto World
BlackRock’s foray into Ethereum and Bitcoin ETFs marks a pivotal moment in the world of cryptocurrency, potentially heralding a new era of institutional adoption and integration into traditional financial markets. As the SEC continues to review these groundbreaking ETF applications, the crypto community eagerly awaits the potential ripple effects of these developments on the broader digital asset landscape.