- BlackRock’s registration of the iShares Ethereum Trust in Delaware has ignited speculation. About an impending SEC application for an Ethereum ETF, mirroring their prior approach with Bitcoin.
- Ethereum, now the second-largest cryptocurrency, is gaining traction due to its role in powering decentralized applications. Driving heightened demand from traditional investors.
- Analysts anticipate favorable prospects for both Bitcoin and Ethereum ETFs. With BlackRock’s early entry positioning them at the forefront of the emerging Ether ETF competition.
Cryptocurrency giant BlackRock has taken a significant step in the world of digital assets by registering an Ethereum trust in the state of Delaware. In addition, this move has recently come to light, leading to widespread speculation regarding the possibility of BlackRock submitting an application for an Ethereum Exchange-Traded Fund (ETF) to the Securities and Exchange Commission (SEC).
BlackRock’s Ethereum Trust
Independent analysts were the first to uncover BlackRock’s registration of the iShares Ethereum Trust. Which was shared on the social platform X (formerly known as Twitter). Eric Balchunas, a senior ETF analyst at Bloomberg, personally confirmed this news. The registration of this trust by BlackRock is reminiscent of their approach to Bitcoin. Where they registered a Bitcoin trust shortly before applying for a Bitcoin ETF. This timing hints at the potential for a forthcoming official proposal for an Ethereum ETF.
Competing for an ETH ETF
BlackRock is now joining the ranks of major contenders like VanEck, all vying to establish the inaugural US Ether ETF. The motivation behind this race is clear – Ethereum has solidified itself as the second-largest cryptocurrency in the market. Its ever-expanding role in powering decentralized applications and services has earned it a substantial presence in the real world. As a result, there is growing demand among traditional investors for easy access to Ethereum.
The news of BlackRock’s involvement in the Ethereum space caused a notable surge in the price of Ether (ETH), which increased by over 5% according to CoinMarketCap data. Ethereum’s value has now surpassed the $2,000 threshold, currently trading at $2,040, though the price exhibits signs of volatility.
ETF Landscape and Bitcoin Prospects
Turning our attention to the broader ETF landscape, ETF analyst James Seyffart offers insights into the approval odds of a Bitcoin spot ETF. Moreover, he anticipates a 90% likelihood of approval by January 2024. Additionally, he suggests that the SEC could potentially approve all pending Bitcoin ETF applications concurrently within a relatively brief timeframe.
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The simultaneous developments in the Bitcoin and Ethereum ETF space suggest that both cryptocurrencies face increasingly favorable prospects, despite the SEC’s customary opacity concerning the crypto sector. BlackRock’s registration of the Ethereum Trust positions the firm at the forefront of the Ether ETF competition when regulatory winds eventually shift.
In conclusion, BlackRock’s latest move into the Ethereum market is a significant development that may foreshadow the arrival of an official Ethereum ETF. Furthermore, as the cryptocurrency market continues to evolve and gain mainstream acceptance, traditional investors are eager to access these digital assets through regulated investment vehicles.
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