BlackRock, the world’s largest asset manager, has officially filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an ETF that will track the performance of Ethereum, the second largest cryptocurrency. In light of these events, it’s worth examining how such a move could impact the cryptocurrency market and what it means for the average investor.
BlackRock, a global investment management giant, has taken a significant step in the cryptocurrency market. It has recently officially filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an Exchange-Traded Fund (ETF) that will track the performance of Ethereum (ETH). This is the company’s second cryptocurrency ETF application, following an earlier application for a Bitcoin ETF.
BlackRock’s move is considered a breakthrough in the world of cryptocurrencies. Ethereum, being the second largest cryptocurrency, has long attracted investor attention. BlackRock’s application for an Ethereum ETF, named “iShares Ethereum Trust,” gained significance when Nasdaq submitted a proposal to list and trade shares of this fund. The filing had a direct impact on the price of ETH, which rose by $200 within a few hours.
BlackRock’s application, filed on November 15, 2023, represents a significant step towards the recognition of cryptocurrencies by a major player in the financial market. BlackRock, as a trillion-dollar asset manager, has the potential to mainstream cryptocurrency investments.
However, despite this significant move, the price of Ethereum has not shown sharp jumps. According to CoinMarketCap, ETH is currently priced at around $2069.45, with a market capitalization exceeding $248 billion.
In its application to the SEC, BlackRock designated Coinbase Custody Trust as the custodian of the Ethereum ETF fund. Shares of this fund are to be listed on Nasdaq and will be based on the CME CF Ether-Dollar Reference Rate. This is significant as it brings well-known and respected financial institutions into the game, which may contribute to increasing investor confidence in cryptocurrencies.
BlackRock’s impact on the cryptocurrency market is already evident. The company was the first in 2023 to file an application for a Bitcoin ETF. This action quickly found followers among other important players in the ETF market.
Interestingly, although BlackRock has applied for ETFs for BTC and ETH, the company has denied recent rumors about plans to launch a similar fund for Ripple (XRP).
BlackRock’s impact on the cryptocurrency market is undeniable, and the company’s further actions and SEC decisions will be crucial for the future of cryptocurrency investments. It’s worth following these events to understand how they may affect the market and what they mean for the average investor.
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