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BlackRock files for spot Ethereum ETF with U.S. regulators

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BlackRock, the world’s largest asset manager, has submitted an application to the U.S. Securities and Exchange Commission for an exchange-traded fund (ETF) that would directly hold Ethereum. The proposed ETF, known as the iShares Ethereum Trust, is designed to mirror the price movements of Ethereum, similar to how a gold ETF tracks the price of gold.

This filing comes after BlackRock’s prior application for a bitcoin ETF, which is currently awaiting approval from the SEC. This news was first reported by The Block.

If approved, the Ethereum ETF could be a significant development for the cryptocurrency, making it more easily accessible to mainstream investors through traditional brokerage accounts. However, previous bitcoin ETF applications have been rejected by the SEC due to concerns about volatility and potential market manipulation in the underlying crypto markets.

The fact that BlackRock is now applying for an Ethereum ETF indicates that the company sees potential for SEC approval in the near future. The Ethereum market has matured rapidly, nearing a market capitalization of $250 billion. BlackRock CEO Larry Fink acknowledged this, noting, “There is pent-up interest in crypto from clients.”

The approval of a spot Bitcoin or Ethereum ETF could provide the regulatory clarity needed to unlock significant institutional demand. BlackRock’s size and influence could also influence regulators in the approval process.

The SEC is expected to take several months to decide on BlackRock’s Ethereum ETF application. In the meantime, the filing reflects BlackRock’s confidence in Ethereum’s long-term value and regulatory prospects.

Ethereum is known for powering decentralized finance applications and non-fungible token platforms, demonstrating its utility beyond being a digital currency.

Photo by Moose Photos.

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