The World's Largest Asset Manager, BlackRock, Makes a Move into the Ether ETF Market
BlackRock, the world's largest asset manager, has officially filed for a spot Ether exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC) on November 15th. The ETF, called the iShares Ethereum Trust, aims to track the performance of the price of Ether, the native cryptocurrency of the Ethereum blockchain.
This move by BlackRock follows its registration of the iShares Ethereum Trust with the Delaware Department of State Division of Corporations last week and its filing for a spot Bitcoin ETF application six months ago. The iShares brand, associated with BlackRock's ETF products, already includes the iShares Bitcoin Trust, which appoints Coinbase as the custodian for the underlying Bitcoin.
Spot ETF Approval Process
The approval process for a spot ETF involves two steps. The issuer of the ETF must obtain approval from the SEC's Trading and Markets division on its 19b-4 filing and the Corporate Finance division on the S-1 filing or prospectus. While the spot Bitcoin ETF rush began earlier this year, with BlackRock leading the way, the rush for spot Ethereum ETFs started in November when the SEC acknowledged Grayscale Investment's application to convert its Ethereum trust into an ETF.
Growing Interest in Crypto ETFs
The interest in crypto-based spot ETFs from institutional investors has been growing, particularly as the crypto market continues to recover from the last bear market. Market experts and ETF analysts predict that the chances of approval for a spot Bitcoin ETF by early 2024 are as high as 90%. However, approval for a spot Ether ETF may come after that.
Overall, BlackRock's filing for a spot Ether ETF further demonstrates the increasing interest of institutions in the crypto market and highlights the growing acceptance of cryptocurrencies as investment assets.
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