TL;DR
- A 19b-4 filing submitted on Thursday afternoon confirms that BlackRock is in the process of developing a spot ether exchange-traded fund (ETF).
- This comes after BlackRock filed for a spot Bitcoin exchange-traded fund this summer, setting the start for a crypto bullish run.
Nasdaq Files an iShares Ethereum Trust
BlackRock has officially disclosed its development of a spot ether exchange-traded fund (ETF) in a 19b-4 filing submitted on Thursday.
Nasdaq submitted the filing for the proposed ETF shortly after BlackRock initiated the registration of an entity in Delaware.
BlackRock has demonstrated a growing interest in the space over the past months. The entity is awaiting a decision on its application for a spot Bitcoin ETF from the SEC.
As outlined in the filing, the proposed Ether ETF is set to utilize Coinbase Custody Trust Company as its custodian. It will rely on the CME CF Ether-Dollar Reference Rate – New York Variant.
Ether On a Rally
Ether experienced a surge in value following Nasdaq’s filing, which outlines the Trust’s investment objective to generally reflect Ether’s performance.
Several asset managers, including Grayscale, Ark Invest, ProShares, and Valkyrie, have submitted applications for spot Ether ETFs.
However, the approval process for these applications takes months, similar to how the SEC has imposed delays on spot Bitcoin funds.
Nasdaq’s filing references a recent legal victory for Grayscale Investments. There, three judges mandated the SEC to reevaluate the transformation of GBTC into a spot Bitcoin ETF.
The filing also addresses the SEC’s differential treatment of spot and futures ETFs, fostering optimism within the industry.
Nasdaq points out that since the SEC has accepted futures-based Ether ETFs, it should approve a spot Ether ETF also.
What Will Happen Next?
The filing by Nasdaq for the iShares Ethereum Trust signifies a transformative impact for end users in cryptocurrency.
If approved, the ETF would offer investors a regulated avenue to gain exposure to the price performance of Ether.
This development could attract a broader range of investors, including those who prefer the familiarity and regulatory oversight associated with traditional investment vehicles.
The availability of a spot Ether ETF could simplify the investment process for individuals and institutional investors, providing a mainstream vehicle to participate in the dynamic cryptocurrency market.
Additionally, it could enhance liquidity and price discovery for Ether, fostering a more robust and efficient market.
However, end users should remain mindful of regulatory processes, as approval timelines can be protracted.
Nonetheless, the filing underscores cryptocurrencies’ growing acceptance and integration into traditional financial frameworks. This could potentially reshape investment landscapes for the broader market.
Sam Farao
Sam is our pioneering figure in affiliate marketing and the blockchain space (prior to co-founding Coinweb.com). His ventures, including Netpixel Media and Captana, have set new benchmarks in the affiliate marketing industry, leading to a notable acquisition by Speqta AB for 31.5 million Norwegian kroner ($3.8 million USD). Farao's foray into blockchain technology is marked by the Lightbulb Man project, a blockchain-based art collection featuring NFTs, which sold out in one day! This highlights his role in merging the worlds...
