BlackRock’s Ethereum Trust has followed the same ETF model as bitcoin, suggesting an application for a spot ether ETF to the SEC is soon to come.
In order to develop an ETF based on the cryptocurrency ether, the world’s largest asset manager, BlackRock, has taken the first tangible step toward doing so.
The company’s iShares branch asked the state of Delaware to approve the iShares Ethereum Trust. That’s quite similar to what BlackRock did earlier this year before trying to get an ETF based on Bitcoin approved by regulators.
The iShares Bitcoin Trust was registered by BlackRock seven days before the company applied to the SEC for a bitcoin ETF. The new trust registration by BlackRock is a precursor to an SEC filing for an ether exchange-traded fund.
Individual investors would benefit from an ether ETF because it would provide efficient exposure to the second-largest cryptocurrency by market capitalization without requiring them to physically own any ether.
BlackRock’s heft and influence could convince hesitant authorities to clear the way for an ether spot ETF. With roughly $10 trillion in assets under control, BlackRock is the biggest asset manager in the world, making its crypto forays significant for wider public acceptance.
There has been anticipation that the SEC would soften its position on spot bitcoin and ether ETFs due to changes in leadership and market circumstances. BlackRock is getting ready to launch an ether fund, so the lengthy wait might be over soon.
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