Multi-trillion-dollar asset management giant BlackRock Inc. has raised market optimism by filing for the registration of an Ethereum spot Exchange Traded Fund (ETF) in Delaware.
This move, seen as a precursor to a formal application with the United States Securities and Exchange Commission (SEC), underscores BlackRock’s growing interest in the cryptocurrency market.
Ethereum Spot ETF: Will the SEC Approve?
BlackRock’s latest registration, named the iShares Ethereum Trust, was submitted in Delaware with the Department of State Division of Corporations. While it is not an active ETF filing, experts anticipate that it could lead to an official application to the SEC in the near future.
With over $10 trillion in Assets Under Management (AUM), BlackRock expanded its crypto ventures earlier this year by filing for its iShares Bitcoin Trust, paving the way for this current move toward the iShares Ethereum Trust.
BlackRock’s Influence on the Market
BlackRock’s significant presence in the financial world has had a notable impact on the cryptocurrency market. When the company embraced the Bitcoin spot ETF, it prompted a surge in similar applications from other firms like Fidelity Investments and VanEck.
A similar trend is expected in the case of the Ethereum ETF. BlackRock has been persistent in pursuing a Bitcoin spot ETF, repeatedly refining its application based on feedback from the SEC.
The asset manager even provided funding for the product in recent reports, further indicating its commitment. However, although official approval for a Bitcoin ETF is still pending, BlackRock’s involvement has bolstered confidence that approval is a matter of “when” rather than “if.”
Ethereum’s Price Reaction
The news of BlackRock’s ETF registration had a significant impact on the broader market, particularly driving Ethereum to new highs. During this time writing, Ethereum has surged by 6.05%, breaking the $2,000 resistance level for the first time since July.
Further, the prospect of an Ethereum ETF represents a positive development for the cryptocurrency, positioning it alongside Bitcoin as an asset favored by institutional investors if the official ETF gains approval in the long term.
Competing Players in the Ethereum ETF Race
It is worth noting that BlackRock is not the first major player to enter the Ethereum ETF race. Other key market participants, including Grayscale Investments have already approached the SEC with requests to convert their Ethereum Trust into a spot Ethereum ETF product.
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