BlackRock Files for Ether ETF Amid Cryptocurrency Market Surge

Officially filing with the United States Securities and Exchange Commission (SEC) on November 15, BlackRock, the largest asset manager globally, proposed to establish a spot Ether exchange-traded fund (ETF).

Following the SEC-filed Form S-1, the iShares Ethereum Trust, an Ether ETF, “aims to generally reflect the performance of the price of Ether.”

With its Bitcoin ETF known as the iShares Bitcoin Trust, the iShares brand is affiliated with ETF products manufactured by BlackRock. As the custodian for the underlying ETH, Coinbase is appointed by the trust.

BlackRock spot Ether ETF Form S-1 filing. Source: SEC

BlackRock made this decision almost six months after submitting its spot Bitcoin ETF application and nearly a week after registering the iShares Ethereum Trust with the Delaware Division of Corporations.

Anticipating the increasing interest of institutions in the cryptocurrency market, BlackRock initiated the spot Bitcoin ETF surge earlier in 2023.

It is the most recent institution to apply for a spot at ETH ETF, having done so within the past six months.

The issuance of a spot ETF must obtain SEC approval from both the Corporate Finance division on its S-1 filing or prospectus and the Trading and Markets division on its 19b-4 filing.

This is a two-step process. When the SEC approved Grayscale Investment’s application to convert its Ethereum trust into an ETF in early November 2023, the spot Ethereum ETF stampede commenced.

The SEC denied the applications of numerous institutional behemoths for spot crypto ETFs during the previous bull cycle, arguing that the crypto market was too small to warrant such an instrument.

There is a 90% chance that a spot Bitcoin ETF will be approved by early 2024, according to market commentators and ETF analysts. Approval for a spot in the ETH ETF may follow suit.

A significant portion of ground that was lost during the previous bear market has been regained by the cryptocurrency market, coinciding with the institutional stampede into spot ETFs backed by cryptocurrencies.