Ethereum Spot ETF Application Update: BlackRock Enters the Arena, a Game-Changer?
BlackRock’s Big Move in Crypto — Filing for Ethereum ETF
On November 10, BlackRock, the asset management behemoth, brought thrilling news to the cryptocurrency market. Bloomberg analyst James Seyffart revealed in an early morning tweet that BlackRock, in partnership with Nasdaq, has submitted a 19b-4 form to the SEC, seeking approval for the iShares Ethereum Trust, an Ethereum spot ETF. This significant move by BlackRock marks a pivotal moment in the integration of traditional finance with the burgeoning world of cryptocurrencies.
Ethereum’s Price Surge Following the Announcement
Following this announcement, Ethereum (ETH) has shown a robust performance. Prices soared past the $2,000 mark, hitting $2,100 — a jump of over 10% and nearing the peak seen in April last year. This bullish trend reflects investor optimism and confidence in Ethereum’s potential, especially with BlackRock’s backing.
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Coinbase to Act as Custodian
According to BlackRock’s filing, the renowned cryptocurrency exchange Coinbase will act as the custodian for the Ethereum held in this ETF product. Furthermore, an unnamed third party will hold the cash positions. The filing also mentions a regulatory sharing agreement signed between BlackRock and Coinbase, a move perceived as crucial for gaining SEC approval for this type of ETF.
Key Insights from BlackRock’s Filing
Nate Geraci, President of The ETF Store, highlighted key points from BlackRock’s Ethereum ETF 19b-4 filing on Twitter. These include Grayscale’s legal victory and the SEC’s requirements for approving spot Ethereum ETFs being aligned with those for Ethereum futures ETFs. BlackRock’s statements emphasize the rationality of launching an ETH spot ETF, especially considering legal and regulatory perspectives.
Other Contenders in the Race for Ethereum ETF Approval
BlackRock isn’t alone in the race for an Ethereum spot ETF. ARK Invest, founded by Cathie Wood, and ETF issuer 21Shares jointly filed the first Ethereum spot ETF application in early September, named “ARK 21Shares ETHEREUM ETF.” Similarly, VanEck was ahead in the game, filing their Ethereum spot ETF application in May 2021, with Cboe BZX Exchange submitting the 19b-4 form in September.
In addition, institutions like Hashdex have submitted strategy adjustment applications, while Invesco Galaxy Ethereum ETF and Grayscale Ethereum Trust (ETHE) have applied for transformation. The SEC has extended the review period for applications from VanEck, Ark 21Shares, and Invesco Galaxy as of early October.
Anticipation for SEC’s Decision
The SEC’s decision on these applications is eagerly anticipated. The review deadlines for Hashdex and Grayscale’s transformation applications are approaching on November 17, coinciding with the first window period for the Bitcoin spot ETF review. As of this writing, BlackRock’s application has yet to appear in federal announcements, but the industry awaits with bated breath.
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Conclusion:
The entry of BlackRock into the Ethereum ETF space could potentially be a game-changer, offering legitimacy and attracting more traditional investors to the crypto market. The coming weeks are crucial as the SEC reviews multiple applications, with the potential to reshape the landscape of cryptocurrency investment.
Keywords: BlackRock, Ethereum ETF, Nasdaq, SEC, 19b-4 filing, Coinbase Custody, crypto market, ETH price surge, iShares Ethereum Trust, ARK Invest, 21Shares, VanEck, Grayscale, Invesco Galaxy, cryptocurrency investment, traditional finance, digital assets
