The iShares Ethereum Trust ETF aims to mirror the price performance of ether, according to the Form S-1 submitted by iShares on Wednesday. BlackRock's ETF products are linked to the iShares brand.
Ethereum ETF Key Insights
- BlackRock made an official submission to the SEC for a spot Ethereum ETF.
- In June, BlackRock also submitted an application for a Bitcoin ETF.
The filing of Form S-1 follows closely after BlackRock's registration of the iShares Ethereum Trust entity with the Delaware Department of State Division of Corporations. Shortly thereafter, Nasdaq submitted a filing for the proposed ETF, providing further confirmation of BlackRock's efforts. Coinbase Custody Trust Company has been chosen by BlackRock as the custodian for its forthcoming exchange-traded fund.
The proposed ETF will utilize the CME CF Bitcoin Reference Rate, which is administered by CF Benchmarks, a subsidiary of Kraken. These choices mirror the ones made for BlackRock's proposed spot Bitcoin ETF. As a result of this announcement, the price of Ether (ETH) experienced a significant increase of approximately 2%, reaching nearly $2,100.
What happened to BlackRock's spot Bitcoin ETF application?
In June of this year, BlackRock submitted an application for the iShares Bitcoin Trust, causing a stir in the markets. Currently, the SEC is reviewing several spot bitcoin ETF applications, including one from BlackRock. Interestingly, the asset manager's bitcoin ETF ticker, IBTC, has been listed on the Depository Trust & Clearing Corp's website since August, but it was only recently discovered.
According to reports, major trading companies such as Jane Street, Virtu Financial, and Jump Trading are currently in discussions to offer liquidity for BlackRock's proposed spot bitcoin ETF, provided it receives regulatory approval. The possibility of a spot bitcoin ETF approval has caused a surge in the price of bitcoin over the past month.
BlackRock CEO Larry Fink recently cited the false news report that claimed the spot ETF was approved as an example of the high level of interest in cryptocurrency. In related news, the Delaware Department of Justice is currently investigating the registration of an entity called "iShares XRP Trust" in Delaware, which was attributed to BlackRock earlier this week.
Despite the association, BlackRock has stated that the filing has no connection to the asset manager.
What does BlackRock do?
BLK, also known as BlackRock, Inc., is a multinational investment company headquartered in New York City. Established in 1988, it started as a fixed income institutional asset manager and enterprise risk management firm. Today, it is the largest asset manager in the world, managing assets worth US$9.42 trillion as of June 30, 2023. With 70 offices in 30 countries and clients in 100 countries, BlackRock operates globally. It is also the manager of the iShares group of exchange-traded funds and is one of the Big Three index fund managers, along with The Vanguard Group and State Street.