BlackRock, a leading asset management firm, has taken steps to start an Ethereum trust. This action could lead to a new type of investment fund that focuses on Ethereum, a popular digital currency. The trust, known as iShares Ethereum Trust, has been set up in Delaware. This is s...
BlackRock, a leading asset management firm, has taken steps to start an Ethereum trust. This action could lead to a new type of investment fund that focuses on Ethereum, a popular digital currency. The trust, known as iShares Ethereum Trust, has been set up in Delaware. This is similar to something BlackRock did earlier with Bitcoin.
BlackRock has made first step towards filing for a spot Ether ETF. I just confirmed on the website myself. Nice catch by @SummersThings https://t.co/mLKIhKdiI6— Eric Balchunas (@EricBalchunas) November 9, 2023
Ethereum’s Price Rise
Ethereum’s value increased by 7% to $2,022, which is the highest it’s been since April. Bitcoin, another well-known digital currency, also went up by 2.4%. The price of these currencies is rising, and BlackRock’s new trust might be one reason for this.
BlackRock’s Plans
BlackRock has not shared details about their plan or if they want to start an ETF, which is a type of investment fund that can be traded like stocks. They had made a similar move with Bitcoin before, and soon after, they asked the government to let them start a Bitcoin ETF. Many other companies have also tried to start their own Bitcoin ETFs.
Government Hesitation
The government, specifically the U.S. Securities and Exchange Commission (SEC), has not yet approved an ETF that directly deals with digital currencies like Bitcoin or Ethereum. They are worried about potential fraud and dishonesty in the market. Even though companies like Ark Investment Management and VanEck have asked for approval, the SEC has not said yes yet.
Delaware Registration Details
BlackRock registered the Ethereum trust on November 9. Daniel Schweiger, who works at BlackRock, is listed as the agent for this trust. The trust’s registration might mean that BlackRock will soon ask the SEC for permission to start an Ethereum ETF.
Industry Reactions and Future Decisions
Several companies are waiting for the SEC to decide on their requests to start their own digital currency ETFs. These decisions are expected by the end of December. Meanwhile, new digital asset ETFs that focus on long-term investments in Bitcoin and Ethereum futures have been introduced.
BlackRock’s Influence and Ethereum’s Growth
BlackRock is the biggest company in its field, managing about $9 trillion. Its decision to start a Bitcoin ETF is still being reviewed by the SEC. After the news about the Ethereum trust, Ethereum’s price went up significantly, passing the important $2,000 mark. This is a big change from its previous slow performance. However, BlackRock did not want to talk about these developments.
Summary
In summary, BlackRock has taken a significant step by registering an Ethereum trust in Delaware. This could lead to an ETF for Ethereum, which would be a big development for investors. Ethereum’s price has gone up with this news, showing how important BlackRock’s actions are to the digital currency market. The SEC’s approval is still pending, but the industry is watching closely.