Months after filing for its first-ever crypto-focused spot exchange-traded fund (ETF) – iShares Spot Bitcoin ETF – BlackRock, one of the world’s largest asset managers, has taken steps to list a similar product based on Ethereum (ETH).
According to the details of a filing made on Thursday, November 9, BlackRock registered the iShares Ethereum Trust with the Division of Corporations in Delaware. Similar to its iShares Spot Bitcoin ETF, the Ethereum fund will need regulatory approval from the US Securities and Exchange Commission (SEC).
ETH Rallies to Six-Month High as BlackRock Files for Spot Ethereum ETF
As of now, there has been no formal proposal submitted to the SEC. The Commission has marked the ETF as Commodity-Based Trust Shares. BlackRock’s “iShares” is said to be one of the leading ETF products in the market with assets worth more than $2.3 trillion under the fund’s management.
The price of ETH jumped 8% on the back of the news, breaching the $2,000 barrier and trading at a six-month high of $2,100. BTC also experienced a similar surge in June when BlackRock filed for its iShares Spot Bitcoin Trust ETF with the SEC.
Bloomberg ETF analyst Eric Balchnunas confirmed the news on X, stating that he personally verified the listing on the Delaware Department of State website. He also noted that BlackRock made an initial disclosure for the iShares Bitcoin Trust on the State Department’s website a week before the asset manager sent a final proposal to the SEC.
SEC Continues to Delay Approval of Bitcoin-focused Spot ETFs
However, the SEC has still not approved a Bitcoin ETF for the spot market, despite approving a Bitcoin futures ETF two years ago. The securities watchdog has long opposed the idea of a Bitcoin-based spot investment product, citing that the fund is susceptible to fraud and market manipulation, and could pose serious financial risk to investors.
Last year, the financial regulator rejected an attempt by Grayscale to convert its Bitcoin Trust fund into a spot market-traded ETF. The digital asset manager later sued the Commission and in August, the court overruled the agency’s decision, asking it to re-verify the filing. Although the SEC did not appeal the court ruling, it still chose to delay a decision on the conversion of Grayscale’s $17 billion Bitcoin fund and other ETFs in the pipeline, including BlackRock’s.
BlackRock Joins ARK Invest and VanEck in Offering Etheruem ETFs
If BlackRock decides to move forward with the product, it will be joining the ranks of counterparts like ARK Invest, 21Shares, and VanEck who offer ETFs that directly hold Ether or futures derivatives linked to the price of the asset. In October, the SEC approved the listing of nine Ether Futures ETFs from Valkyrie, ARK Invest, VanEck, Grayscale, and ProShares.
Meanwhile, Grayscale has been making moves on the front after initiating a process in October to convert its Ethereum Trust fund into a Spot Ether ETF. Fund managers Invesco and Hashdex have also filed applications with the SEC to launch their own spot Ether products.
If approved by the SEC, the iShares Ethereum Trust will be listed on the Nasdaq stock exchange.
As Ether (ETH) continues to revel in the hype surrounding a potential ETF listing by the world’s largest asset management company, it trades at $2,122 – up 10.7% from its previous day’s price.