BLACKROCK PREPARES FOR ETHEREUM (ETH) ETF AMID CONFIDENCE IN BITCOIN (BTC) ETF APPLICATION
The price of Ethereum (ETH) has surged 8% to $2,020 as BlackRock shows signs of preparing to launch a spot Ethereum ETF.
According to a recent company registration, BlackRock has registered a corporation named the “iShares Ethereum Trust” in Delaware, similar to its iShares Bitcoin Trust, a spot Bitcoin ETF product currently under review by regulators.
This move follows BlackRock’s filing for its Bitcoin ETF in June, which caused Bitcoin’s price to rise to $30,000 at the time, and inspired close to a dozen rival asset managers to try their hand at similar applications.
However, BlackRock is not the first to venture into the Ethereum ETF race, with names like VanEck, Ark/ 21Shares, and Galaxy/ Invesco already filing for the same product. Similarly, Grayscale is attempting to convert its Ethereum Trust – which holds over $5 billion in ETH – into a spot ETF.
While Ethereum futures ETFs reached the U.S. market in early October, their trading volume proved lackluster.
Despite the SEC’s lack of approval for spot crypto ETFs to date, Bloomberg ETF analysts James Seyffart and Eric Balchunas predict that a spot Bitcoin ETF is 90% likely to be approved by early January.
The price of both Bitcoin and Ethereum surged on Thursday, with Seyffart suggesting that someone caught the news early and made a significant profit.
Additionally, the price of BTC reached an 18-month high of nearly $38,000 on the same day.
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