BlackRock Files for Ethereum ETF, Continuing Crypto Push
BlackRock, the world’s largest asset manager, has officially lodged an Ethereum exchange-traded fund (ETF) application with the United States Securities and Exchange Commission (SEC). This notable step marks BlackRock’s deeper foray into the burgeoning digital asset market.
The proposed ‘iShares Ethereum Trust’ is structured to closely track the price performance of Ethereum (ETH), the second leading cryptocurrency, minus the Trust’s operational expenses and liabilities. This has sent positive ripples through the crypto market, reflecting growing institutional interest in cryptocurrencies.
**Details Of The Proposed Ethereum ETF**
The recent submission of a Form S-1 Registration Statement to the SEC details the iShares Ethereum Trust’s operational framework. BlackRock’s decision to create the Trust comes after registering the corporate name “iShares Ethereum Trust” in Delaware.
“So far, BlackRock has named Coinbase Custody Trust Company as the primary custodian for the Ethereum holdings, signifying a crucial partnership between traditional financial giants and crypto-native firms.”
The Trust’s structure involves the continuous issuance of shares, referred to as “Baskets,” in transactions primarily executed in exchange for Ethereum. The shares of the iShares Ethereum Trust are set to be listed and traded on NASDAQ, with the specific ticker symbol yet to be announced.
This move indicates a significant stride towards integrating crypto within mainstream investment platforms. The trillion-dollar asset manager further disclosed that no public market existed for these shares before this offering, marking a milestone in digital asset investment offerings.
**Regulatory Landscape And Future Prospects**
In its filing with the SEC, BlackRock clearly outlines the regulatory context of the Trust. Additionally, the Trust is not categorized as a commodity pool by the US Commodity Exchange Act, and its sponsor is not subject to regulation by the US Commodity Futures Trading Commission (CFTC) as a commodity pool operator.
Meanwhile, following the filing announcement, ETH has continued its bullishness, up by nearly 1% in the past 24 hours with a trading price above $2,000.
Ethereum (ETH) price is moving sideways on the 4-hour chart. Source: ETH/USDT on TradingView.com
Featured image from Unsplash, Chart from TradingView
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