BlackRock Files Prospectus with SEC for Spot Ether ETF
BlackRock has filed a prospectus with the US
Securities and Exchange Commission (SEC) for a spot ether exchange-traded fund
(ETF). The filing followed the registration of the name of the new offering and
the application for the filing of an application by Nasdaq seeking approval of
the spot ETF.
According to a report by Coindesk, the price of
ether (ETH) surged 2% to $2,080 following the filing of the S-1 form by the
asset management firm. This reaction underscores the market’s heightened
sensitivity to ETF-related updates, echoing the recent trend where court
rulings against SEC rejections of spot crypto ETF applications have kindled
optimism for future approvals.
BlackRock‘s foray into the cryptocurrency realm
extends beyond Ethereum, with the company currently awaiting the approval of
the SEC regarding the potential listing of a spot Bitcoin ETF.
In June, BlackRock filed for iShares Bitcoin Trust exchange-traded fund (ETF) with the SEC. This step followed earlier rejections
of spot Bitcoin ETF applications by the regulators. While launching its bid,
BlackRock emphasized its commitment to democratizing investments in Bitcoin for
institutional and retail investors.
Confirmed. Here’s a screenshot of this mornings iShares Ether ETF S-1 filing. Not a shocker tho as they had already filed 19b-4 for it last week. https://t.co/QSXxagwC99 pic.twitter.com/UxJ7y4YC8j
— Eric Balchunas (@EricBalchunas) November 16, 2023
Notably, BlackRock’s proposed ETF aims to leverage
custodian services from Coinbase to safeguard Bitcoin assets held by the Trust.
Besides that, the company intends to utilize the CME CF Bitcoin Reference Rate
to track Bitcoin prices. This metric is derived from reputable cryptocurrency
exchanges worldwide by CF Benchmarks, a Kraken subsidiary.
While several companies, including Grayscale,
VanEck, and WisdomTree, have previously applied for spot Bitcoin ETF approval,
the SEC has remained cautious, rejecting multiple applications. Despite this,
the market has witnessed the listing of a few futures-based Bitcoin ETFs in the
US.
Shifting Crypto Investment Landscape
BlackRock is not the only asset management giant in
the US seeking the approval of a spot ether ETF in the US. In August, Valkyrie
Investments, headquartered in Tennessee, initiated the process of launching an
Ethereum Strategy exchange-traded fund (ETF). Differing from conventional ETFs,
this pioneering venture targets Ether futures and a diverse array of collateral
assets.
Valkyrie’s ETF stands out for its unique approach,
aiming to invest in Ether futures rather than conventional assets like stocks
or commodities. The ETF’s design, as outlined in documents filed with the SEC,
sets it apart by focusing on Ether futures and a diversified range of
collateral assets, diverging from the traditional ETF landscape.
The second quarter of 2023 witnessed a substantial
surge in institutional investments within the cryptocurrency realm,
specifically in Bitcoin and Ether futures. This was boosted by the desire to
manage risks and navigate market volatility.
BlackRock has filed a prospectus with the US
Securities and Exchange Commission (SEC) for a spot ether exchange-traded fund
(ETF). The filing followed the registration of the name of the new offering and
the application for the filing of an application by Nasdaq seeking approval of
the spot ETF.
According to a report by Coindesk, the price of
ether (ETH) surged 2% to $2,080 following the filing of the S-1 form by the
asset management firm. This reaction underscores the market’s heightened
sensitivity to ETF-related updates, echoing the recent trend where court
rulings against SEC rejections of spot crypto ETF applications have kindled
optimism for future approvals.
BlackRock‘s foray into the cryptocurrency realm
extends beyond Ethereum, with the company currently awaiting the approval of
the SEC regarding the potential listing of a spot Bitcoin ETF.
In June, BlackRock filed for iShares Bitcoin Trust exchange-traded fund (ETF) with the SEC. This step followed earlier rejections
of spot Bitcoin ETF applications by the regulators. While launching its bid,
BlackRock emphasized its commitment to democratizing investments in Bitcoin for
institutional and retail investors.
Confirmed. Here’s a screenshot of this mornings iShares Ether ETF S-1 filing. Not a shocker tho as they had already filed 19b-4 for it last week. https://t.co/QSXxagwC99 pic.twitter.com/UxJ7y4YC8j
— Eric Balchunas (@EricBalchunas) November 16, 2023
Notably, BlackRock’s proposed ETF aims to leverage
custodian services from Coinbase to safeguard Bitcoin assets held by the Trust.
Besides that, the company intends to utilize the CME CF Bitcoin Reference Rate
to track Bitcoin prices. This metric is derived from reputable cryptocurrency
exchanges worldwide by CF Benchmarks, a Kraken subsidiary.
While several companies, including Grayscale,
VanEck, and WisdomTree, have previously applied for spot Bitcoin ETF approval,
the SEC has remained cautious, rejecting multiple applications. Despite this,
the market has witnessed the listing of a few futures-based Bitcoin ETFs in the
US.
Shifting Crypto Investment Landscape
BlackRock is not the only asset management giant in
the US seeking the approval of a spot ether ETF in the US. In August, Valkyrie
Investments, headquartered in Tennessee, initiated the process of launching an
Ethereum Strategy exchange-traded fund (ETF). Differing from conventional ETFs,
this pioneering venture targets Ether futures and a diverse array of collateral
assets.
Valkyrie’s ETF stands out for its unique approach,
aiming to invest in Ether futures rather than conventional assets like stocks
or commodities. The ETF’s design, as outlined in documents filed with the SEC,
sets it apart by focusing on Ether futures and a diversified range of
collateral assets, diverging from the traditional ETF landscape.
The second quarter of 2023 witnessed a substantial
surge in institutional investments within the cryptocurrency realm,
specifically in Bitcoin and Ether futures. This was boosted by the desire to
manage risks and navigate market volatility.