TL;DR
- BlackRock, the trillion-dollar asset manager, officially files for an S-1 application for its Spot Ethereum ETF with the US Securities Exchange Commission.
- The filing signifies a significant stride towards integrating cryptocurrency into the mainstream investment platform.
BlackRock’s S-1 Marks a Milestone in Digital Asset Investments
The world’s largest asset manager, BlackRock, filed for an S-1 prospectus for its spot Ethereum ETF with the US SEC on Thursday.
If the application is approved, BlackRock will offer spot Ethereum ETF services to its institutional clients.
The move will open the gates of the cryptocurrency market, meaning new investments will enter the digital asset market.
The filing follows BlackRock’s Ethereum Trust ETF Application With Nasdaq.
According to the application filed, the iShares Ethereum Trust is a spot ETF that generally reflects the performance of ether price minus the Trust’s operational liabilities and expenditures.
The shares will also be listed and traded on NASDAQ, with a special ticker symbol that hasn’t been released yet.
Coinbase Custody Trust Company is the current appointed custodian for ETF, showing the importance of a crucial partnership between traditional financial giants and crypto native firms.
Besides the spot Ethereum ETF, BlackRock made a Bitcoin ETF application awaiting the SEC’s approval.
The development may bring bullish momentum into Bitcoin and Ethereum, making the crypto market attract an inflow of investments.
It also shows BlackRock’s commitment to expanding its portfolio offerings in crypto, reflecting institutions’ growing interest in digital assets.
Grayscale 19b-4 Application for ETHE Delayed By SEC
The US SEC has recently delayed Grayscale’s application, submitted before BlackRock’s application.
Grayscale intended to convert its Bitcoin Trust (GBTC) into a spot Bitcoin ETF and had applied to turn its Ethereum Trust (ETHE) into a spot ETF.
On Wednesday, the US SEC delayed this 19b-4 application for an Ethereum Futures ETF.
James Seyffart, an ETF analyst, highlighted what Grayscale might look like after the 19b-4 application, noting that the US already has ETH futures ETFs.
He notes that after Grayscale’s victorious win in the GBTC case against the SEC, the company may face a similar battle for its ETHE.
ETH and BTC Prices Spike after BlackRock S-1 Application
The current crypto titans, BTC and ETH, turned green just minutes after BlackRock filed for spot Ethereum ETF.
Bitcoin may breach the $38,000 mark, while Ethereum may climb above $2,100. The two coins jumped by nearly 4% after this application was filed.
Institutional investors think Ethereum is the new silver and Bitcoin is the new gold. A spot Bitcoin ETF and Ethereum ETF combination may trigger bullish trends in 2024-2025.
When the US SEC approved BlackRock’s spot gold ETF application in 2004, precious metal prices soared by 350%. This historical context sets a promising stage for crypto investors.
Now, with BlackRock, a giant managing trillions in assets, applying for a spot in the Ethereum ETF, the outlook for the crypto market seems bright.
If the SEC greenlights this application, Ethereum and Bitcoin prices could surge. However, we must stay alert to how significantly they rise.
Will the US Securities Exchange Commission approve BlackRock S-1 application for its spot for Ethereum ETF?
Suchet Salvesen
Suchet is a Norwegian economist, entrepreneur, and investor, serving as the CFO and COO of Brainfund. With over a decade of experience in global expansion, venture capital, and emerging technologies, he earned his MBA from the NMBU School of Business & Economics. He held dual bachelor's degrees from the University of South-Eastern Norway. His career spans roles at NextToMe, Get, and Conax before joining Everipedia, now Brainfund, in 2017.
