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BlackRock files for spot Ethereum ETF on Nasdaq as ETH exceeds $2,100

Published

1 year ago

November 10, 2023

Asset management giant BlackRock moves forward with plans to launch an exchange-traded fund (ETF) for Ethereum. In a filing with the Nasdaq stock exchange on Thursday, BlackRock stated its proposal for an “iShares Ethereum Trust.” BlackRock plans an ETF that allows investors to invest in Ethereum through the stock market.

Following the news of BlackRock’s application, Ethereum’s price skyrocketed more than 9%. According to CoinGecko, Ethereum has not experienced a threshold like this since April. The last time ETH was this high was in May 2022. This followed a crash that started in November 2021. ETH’s price is now up more than 30% for the month and 85% over the past year.

BlackRock’s filing for an Ethereum Spot ETF follows a registration for an Ethereum trust in Delaware. Analysts say this could indicate plans to seek regulatory approval for the ETF

An Ethereum spot ETF would allow retail investors to gain access to a highly liquid cryptocurrency market. Moreover, it would allow for potential billions of dollars of new investment if it’s approved.

BlackRock plans to offer an ETF with the ticker “ETH” that tracks the price of Ethereum held by a trust sponsored by iShares.

In June 2023, BlackRock applied for a Bitcoin Spot ETF with the SEC. The application included an investment management partnership with Coinbase, a major cryptocurrency exchange. BlackRock hoped to offer exposure to Bitcoin without the need to buy or hold it directly. However, the SEC has not yet approved the ETF.

It’s unclear when BlackRock will formally apply to the SEC for approval of the ETF, seeing that the SEC previously rejected proposals for spot Bitcoin ETFs, citing manipulation concerns.

While the SEC has rejected applications for Bitcoin spot ETFs, it has approved Bitcoin futures ETFs. It also recently allowed Ethereum futures ETFs to trade. This could indicate a more welcoming stance toward crypto ETFs.