- BlackRock submitted an application for an Ethereum ETF to the United States Securities and Exchange Commission.
- The objective of the iShares Ethereum Trust is to replicate the price performance of Ethereum.
- This new development could also increase the chances of a Bitcoin spot ETF.
BlackRock, the investment management giant, has taken a significant step forward in regard to crypto ETFs. On November 15, 2023, the company formally submitted its S-1 application for a spot Ethereum ETF, marking a pivotal moment in the listing process.
Impact on Ethereum Price
Despite the anticipation surrounding this move, the effect on Ethereum’s price has been relatively subdued. As of the latest data from CoinMarketCap, Ethereum is trading at $2040, boasting a market capitalization exceeding $248 billion. The 7-day chart for ETH indicates a noteworthy uptrend of over 8 percent.
BlackRock’s Ethereum Strategy
BlackRock’s strategic move into the Ethereum space was unveiled recently when it filed for a spot ETH ETF named ‘iShares Ethereum Trust’ with the Delaware Department of State Division of Corporations. Nasdaq further fueled this development by filing a proposal for the listing and trading of shares associated with the spot Ethereum ETF. This announcement caused a surge in Ethereum’s value, breaching the $2100 level.
The SEC filing discloses that Coinbase Custody Trust will serve as the custodian for the spot ETH ETF. Additionally, the shares, set to be listed on the Nasdaq, will follow the CME CF Ether-Dollar Reference Rate.
BlackRock’s Influence in the Market
BlackRock’s influence in the ETF market is not a recent development. The investment management giant played a pioneering role by filing for a spot Bitcoin ETF earlier this year. This move triggered a domino effect, inspiring several other significant players in the ETF market to follow suit.
Furthermore, BlackRock’s involvement has heightened the prospects of a spot Bitcoin ETF receiving approval. The progress and developments in BlackRock’s filings have correlated with notable fluctuations in Bitcoin’s price.
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Response to Fake Spot XRP ETF Filing
The market also witnessed BlackRock’s impact when a fraudulent spot XRP ETF filing emerged. Submitted to the Delaware Department of State Division of Corporations, this fake filing prompted a swift rise in XRP’s value, leading to the liquidation of over $7 million worth of futures positions.
While BlackRock’s plans for altcoins remain uncertain, its influence on the crypto market is undeniable. The trajectory of these developments now rests in the hands of the US Securities and Exchange Commission (SEC).
During Gary Gensler’s tenure as SEC chairman, Ethereum’s classification as a security or commodity remained unresolved. Gensler, in his previous role at MIT in 2018, indicated that the SEC did not label Ethereum a security due to its perceived decentralization. This viewpoint echoes sentiments expressed by former SEC Director of Corporate Finance, William Hinman, in June 2018.
BlackRock’s effort towards crypto ETFs is helping the crypto market move in the right direction. However, the SEC is still quite active and there will be challenges before these ETFs become a reality.
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