Blackrock filed for the spot Ether ETF form S-1 with the SEC through the registration of a corporate entity named “iShares Ethereum Trust” in Delaware, and the S-1 form was filed.
Blackrock, the world’s largest asset manager has officially submitted S-1 the spot ETF (Ether exchange-traded Fund) named the iShares Ethereum Trust on November 15th,2023.
The iShares Ethereum Trust ETF, named iShares Ethereum Trust generally reflects the performance of the price of ether as stated in the Form S-1 which is submitted to the SEC by iShares on Wednesday. The iShares brand is linked to BlackRock’s range of ETF products.
Soon after Nasdaq applied for the proposed ETF, it was confirmed that BlackRock is actively involved in planning for a spot Ether ETF. The ETF aims to mirror Ether’s price performance, with Coinbase serving as the custodian for the underlying ETH.
This move follows BlackRock’s registration of the iShares Ethereum Trust with Delaware’s Division of Corporations a week earlier and comes six months after filing its Bitcoin ETF application.
Two-Step Process of ETF Filing
BlackRock initiated the rush for spot Bitcoin ETFs in 2023, highlighting growing institutional interest in the crypto market. The filing for a spot ETF involves a two-step process;
- Requiring SEC approval from the Trading
- Markets division for the 19b-4 filing
and the Corporate Finance division for the S-1 filing or prospectus.
Trend of Spot ETH ETF
The trend of spot Ethereum ETF filings gained momentum in early November when the SEC acknowledged Grayscale Investment’s application to convert its Ethereum trust into an ETF.
During the last bull cycle, several institutional giants attempted crypto spot ETF filings, only to face SEC rejection, citing the perceived insufficient size of the crypto market.
Market observers and ETF analysts predict a high likelihood of approval for a spot Bitcoin ETF by early 2024, possibly reaching 90%.
Approval for a spot ETH ETF may follow, reflecting the institutional push into cryptocurrency-based spot ETFs. This surge coincides with the crypto market’s recovery phase, reclaiming a significant portion of losses from the previous bear market.
Ethereum Upward Movement
Ethereum (ETH) price moved 2% upward after this news. ETH crossed the $2000 mark and is currently at the time of writing stable at $2038.
To conclude, the spot ether ETF S-1 filed by Blackrock with SEC gave Ethereum upward movement and is making investors bullish for its approval. With many other asset managers filing for Ethereum ETF, it is more likely to get approved by the SEC with the approval of Bitcoin ETF.
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