BlackRock, the world’s largest asset manager, has deposit an application to the United States Securities and Exchange Commission for an exchange-traded fund that would directly hold Ethereum. The proposed ETF, called the iShares Ethereum Trust, aims to track the price of Ethereum in the same way the price of gold is tracked by a gold ETF.
The filing comes just months after BlackRock filed for a spot bitcoin ETF, which is still awaiting SEC approval. The news was the first reported by The Block.
Approval of Ethereum ETF could be a huge boost for cryptocurrency, allowing traditional investors easy access through traditional brokerage accounts. However, the SEC has rejected several Bitcoin ETF applications in the past, citing concerns about volatility and the potential for manipulation of the underlying crypto markets.
The filing for an Ethereum ETF now suggests that BlackRock sees the potential for an SEC approval soon. The Ethereum market has rapidly matured, now approaching a market capitalization of $250 billion. “Customers spark pent-up interest in crypto” said BlackRock CEO Larry Fink last month.
Approval of a spot Bitcoin or Ethereum ETF could provide the regulatory clarity needed to unlock significant institutional demand. BlackRock’s size and influence could also help regulators gain approval.
It will likely take months for the SEC to rule on BlackRock’s Ethereum ETF application. For now, the filing demonstrates BlackRock’s confidence in Ethereum’s long-term value proposition and regulatory roadmap.
Ethereum powers decentralized finance applications and non-fungible token platforms, extending its utility beyond digital currency.
photo by Moose Photos.