BlackRock, a giant asset management company with around $9 trillion under management, appears to be making headway in the Crypto ETF space.
After proposing a Bitcoin ETF in June, the company has registered the “iShares Ethereum Trust” in Delaware, hinting at a possible Ethereum ETF filing with the US Securities and Exchange Commission (SEC). in English).
— James Seyffart (@JSeyff) November 9, 2023
This move comes as the price of Ethereum (ETH) skyrockets, reaching $2,020, marking a 7% increase in a single day, according to data from CoinMarketCap.
Importantly, BlackRock’s new registration reflects their previous approach with the iShares Bitcoin Trust, which was registered in Delaware shortly before they officially filed an application for a Bitcoin Exchange Traded Fund.
A few months ago, following the announcements, Bitcoin headed towards $30,000 and inspired other asset managers to explore similar applications, including industry giants like Fidelity and Franklin Templeton.
BlackRock is not alone in the race for an Ethereum ETF
Competing with other prominent names such as VanEck, Ark/21Shares and Galaxy/Invesco, BlackRock faces a crowded field.
Grayscale Investments, which holds more than $5 billion in ETH, is also looking to transform its Ethereum Trust into an ETF in place.
Additionally, Ethereum futures ETFs entered the US market in early October, although they experienced limited trading volume.
Even though the SEC has yet to approve on-site cryptocurrency ETFs, Bloomberg ETF analysts James Seyffart and Eric Balchunas predict a 90% chance that an on-site Bitcoin ETF will be approved early from January.
Balchunas has noted that the price of Ethereum rose on the day of BlackRock’s listing, suggesting that someone could have gained advance knowledge of the development, potentially profiting from it.
In parallel with the rise of Ethereum, Bitcoin also experienced an 18-month high, approaching $38,000. These developments reflect growing interest in cryptocurrency ETFs and the integration of digital assets into traditional financial markets.
BlackRock’s foray into Ethereum highlights the changing landscape of cryptocurrencies in the world of institutional finance and further blurs the line between traditional and digital investment opportunities.