BlackRock Confirms Plans for Ethereum ETF
The world’s largest asset management firm, BlackRock, has officially confirmed its plans to launch a spot Ether (ETH) exchange-traded fund (ETF). The confirmation comes after the company filed a 19b-4 form with the United States Securities and Exchange Commission (SEC) on November 9.
The filing, made on behalf of BlackRock by Nasdaq, introduces the proposed ETF called the “iShares Ethereum Trust.” This move signifies BlackRock’s intention to expand its ETF offerings beyond Bitcoin (BTC).
Prior to this filing, it was revealed that BlackRock had registered the corporate entity iShares Ethereum Trust in Delaware, hinting at the possibility of an imminent spot Ether ETF filing.
Interest in Cryptocurrency ETFs
BlackRock is not the only financial firm showing interest in cryptocurrency-backed ETFs. In fact, according to Bloomberg ETF analyst James Seyffart, there are at least five other firms competing for SEC approval for a spot Ether ETF. These firms include VanEck, ARK 21Shares, Invesco, Grayscale, and Hashdex.
Price Surge for Ether
The news of BlackRock’s plans for an Ethereum ETF has had a positive impact on the price of Ether. Following the announcement, ETH experienced a spike of 8.9% and is currently trading at $2,080. Over the last 24 hours, ETH has seen a 10.1% increase in value, according to CoinGecko.
Additionally, this price surge has helped Ether regain some market dominance against Bitcoin. ETH’s market dominance now sits at 17%, up 1.3% percentage points prior to the news.
Overall, BlackRock’s confirmation of its plans for an Ethereum ETF marks a significant step in the expansion of cryptocurrency-based investment products. With other firms also vying for approval, it will be interesting to see how the SEC responds to these proposals and the potential impact on the crypto market.