BlackRock's Nasdaq-Listed Ethereum Investment Trust Secures Approval

The largest global asset manager has generated significant attention by expressing its intention to list a bitcoin ETF. BlackRock is now aiming to establish an ETF centered around Ethereum's ether (ETH), underscoring the firm's deepening commitment to cryptocurrencies.

In response to this announcement, the price of ETH experienced an immediate surge, reaching its peak for the day at nearly $2,100, marking a 3% increase from just before the filing was disclosed. Although it retraced approximately half of this gain, the cryptocurrency still maintained a 9% increase compared to its value 24 hours prior.

Nasdaq, the U.S. exchange where BlackRock  plans to list the product, revealed the company's initiative in an official filing. The establishment of the "iShares Ethereum Trust" in the state of Delaware was also disclosed, with iShares being the designated name for BlackRock's ETF division.

BlackRock has been making waves in the cryptocurrency space by actively pursuing the listing of a bitcoin ETF. This type of easily tradable product has the potential to significantly broaden access to cryptocurrency for average investors. CEO Larry Fink, who was previously skeptical, has become a vocal supporter of crypto

Key language in Nasdaq/iShares spot ether ETF filing...

Grayscale court win + SEC approval of ether futures ETFs should = spot ether ETF approval https://t.co/IUO0wixNCR pic.twitter.com/TclQyOfWjx

— Nate Geraci (@NateGeraci) November 9, 2023

The filing disclosed that the U.S.-based crypto exchange Coinbase would serve as the custodian for the ether held by the product, while an undisclosed third party would be responsible for holding its cash. Additionally, BlackRock has entered into a market-surveillance agreement with Coinbase, a crucial component for obtaining approval from the U.S. Securities and Exchange Commission for such ETFs.

To address potential objections from the SEC regarding the surveillance-sharing aspect, the filing preemptively asserted that BlackRock believes the prices for CME Group's ether futures closely align with spot ETH prices. The document argued that the Commission, by approving ETH futures ETFs based on such surveillance, has already demonstrated its confidence in CME surveillance's ability to detect spot-market fraud affecting both futures and spot exchange-traded products. Consequently, BlackRock anticipates approval for spot ETH ETPs on the same basis.

Read More: Coinbase Users Lead the Charge in Solana's Impressive Rally