The Ethereum ETF will track the performance of the Ethereum spot price. It will be available to institutional and retail investors in the United States.
The registration of the Ethereum ETF is a positive development for the crypto industry, as it signals that large institutional investors like BlackRock are becoming increasingly comfortable with crypto assets. It also suggests that the SEC is open to approving crypto ETFs, as long as they meet certain regulatory standards.
The iShares Ethereum Trust has just been registered in Delaware.
For context, BlackRock's iShares Bitcoin Trust was registered in a similar manner 7 days before they filed the ETF application with the SEC. Details below.
[announcement: I’m moving to @SynopticCom soon] pic.twitter.com/IYafIaxMzA
— Summers (@SummersThings) November 9, 2023
BlackRock’s Ethereum ETF Registration Reaffirms the Good Path with the SEC
The SEC has been hesitant to approve crypto ETFs in the past, due to concerns about market manipulation and fraud. However, the SEC has recently softened its stance on crypto ETFs, as the asset class has matured and become more regulated. In October 2021, the SEC approved the first Bitcoin futures ETF, which was launched by ProShares. Since then, the SEC has approved several other Bitcoin futures ETFs.
The approval of Bitcoin futures ETFs was a significant step forward for the crypto industry, as it paved the way for the SEC to approve spot Bitcoin ETFs. Spot Bitcoin ETFs track the price of Bitcoin directly, unlike Bitcoin futures ETFs, which track the price of Bitcoin futures contracts.
BlackRock’s registration of an Ethereum ETF is a further sign that the SEC is open to approving spot crypto ETFs. The fact that BlackRock is one of the world’s largest and most respected asset managers makes the registration even more significant.
What the Approval of BlackRock’s Ethereum ETF Would Mean for the Crypto Industry?
The approval of BlackRock’s Ethereum ETF would be a major milestone for the crypto industry. It would signal to the world that Bitcoin and other crypto assets are legitimate investment products.
The approval of the ETF would also likely lead to a significant increase in investment in Bitcoin and other crypto assets from institutional investors. This would boost the liquidity of the crypto market and make it more attractive to retail investors. The approval of BlackRock’s Ethereum ETF would be a major victory for the crypto industry. It would be a sign that the industry is maturing and becoming more mainstream.
BREAKING$ETH BREAKS $2,000
→ $9 trillion asset manager BlackRock registers Ethereum Trust in Delaware
pic.twitter.com/eFP05uviFi
— CABANA (@Cabanaandre1) November 9, 2023
Conclusion
BlackRock’s registration of an Ethereum ETF is a positive development for the crypto industry. It reaffirms the good path between BlackRock and the SEC, and it suggests that the approval of BlackRock’s Bitcoin ETF is imminent. It would also likely lead to a significant increase in investment in Bitcoin and other crypto assets from institutional investors.
Disclaimer
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