BlackRock’s Potential Launch of ethereum ETF

BlackRock may be preparing to launch a spot ethereum (ETH) ETF amid roaring confidence that its spot bitcoin (BTC) ETF application is all but certain, a new company registration suggests.

ETH Price Soars

The price of ETH has soared 8% on the day to $2,020.

  • Registration of “iShares ethereum Trust”
  • As shown by @SummersThings on Twitter, BlackRock registered a corporation named the “iShares ethereum Trust” in Delaware on Thursday.
  • Similar to bitcoin Trust
  • The name rings similar to its iShares bitcoin Trust, a spot bitcoin ETF product currently under review by regulators.
  • BlackRock’s Previous bitcoin ETF Application
  • The latter was registered in Delaware just one week before BlackRock officially filed for its bitcoin ETF in June, meaning its latest ethereum Trust filing may be followed by the same.
  • Impact on Market
  • The June filing caused bitcoin’s price to roar to $30,000 at the time, and inspired close to a dozen rival asset managers to try their hand at similar applications – including Fidelity and Franklin Templeton.
  • Competition in ethereum ETF Race
  • Yet BlackRock isn’t first in the ethereum ETF race: so far, names like VanEck, Ark/ 21Shares, and Galaxy/ Invesco have already filed for the same product. Similarly, Grayscale is now attempting to convert its ethereum Trust – which holds over $5 billion in ETH – into a spot ETF.
  • Introduction of ethereum Futures ETFs
  • ethereum futures ETFs reached the U.S. market for the first time in early October, though their trading volume proved lackluster.
  • Likelihood of Approval
  • Though the SEC has approved no spot crypto ETFs to date, Bloomberg ETF analysts James Seyffart and Eric Balchunas predict that a spot bitcoin ETF is 90% likely to be approved by early January.
  • Price Movement Before Announcement
  • Balchunas noted that the price of ETH soared on Thursday before news publicly broke of BlackRock’s new registration.
  • Price Surge
  • The price of BTC also surged on Thursday to an 18-month high of nearly $38,000.
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By Team