BlackRock's Bold Move: iShares Ethereum Trust and Bitcoin ETF Plans

BlackRock’s Bold Move: iShares Ethereum Trust and Bitcoin ETF Plans

Nov. 10, 2023. 2 mins. read.

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Ethereum Trust Filing: A Strategic Step for BlackRock

BlackRock Advisors has made a significant move in the crypto world by filing for an iShares Ethereum Trust entity in Delaware. This step, revealed by the Delaware Department of State Division of Corporations, indicates BlackRock’s growing interest in digital assets. With Ether’s price jumping nearly 8% to around $2,040 today, the move seems timely and potentially lucrative. BlackRock, the world’s largest asset manager, is now positioning itself more aggressively in the cryptocurrency domain.

iShares Bitcoin Trust: Pioneering Crypto ETFs

Earlier this year, BlackRock made headlines with its iShares Bitcoin Trust filing. This move was not just symbolic but impactful, stirring the markets significantly. The iShares brand, synonymous with BlackRock’s exchange-traded fund products, placed a bet on Bitcoin, signaling a shift in traditional investment strategies. The iShares Bitcoin Trust, awaiting SEC review, includes notable details such as its custodian (Coinbase Custody Trust Company) and its benchmark (the CME CF Bitcoin Reference Rate).

Anticipation Builds for Ethereum Trust SEC Filing

Although the iShares Ethereum Trust filing isn’t yet on the SEC’s website, history suggests it could appear soon. The pattern observed with the iShares Bitcoin Trust, which was registered in Delaware before the SEC application, hints at a similar timeline for Ethereum. This anticipation is building excitement in the crypto community.

Liquidity and Regulatory Approval: The Road Ahead

As BlackRock awaits the SEC’s decision on its Bitcoin ETF application, major trading firms like Jane Street and Virtu Financial are reportedly gearing up to provide liquidity for the proposed ETF. The crypto market has been buzzing with optimism over the possibility of a spot bitcoin ETF approval. BlackRock CEO Larry Fink’s recent comments about the market’s “pent-up interest in crypto” underscore the high stakes and keen interest surrounding these developments.

Conclusion: BlackRock’s Crypto Venture Gains Momentum

BlackRock’s foray into establishing an iShares Ethereum Trust, coupled with its ongoing Bitcoin ETF application, marks a pivotal moment in the blending of traditional finance with the burgeoning world of cryptocurrencies. As the financial giant navigates regulatory processes and market dynamics, its moves are closely watched, with the potential to significantly influence the crypto landscape. As BlackRock deepens its crypto involvement, it’s clear that the worlds of traditional asset management and digital currencies are becoming increasingly intertwined.

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SOURCE: BlackRock has filed to register a new iShares Ethereum Trust entity in Delaware | The Block