BlackRock Inc. is considering introducing an Ether-focused exchange-traded fund, which might lead to a price increase for the second-largest cryptocurrency. Thursday saw the submission of a “19b-4 form” by Nasdaq, the exchange with which BlackRock is collaborating on the ETF, marking the next stage in the process toward the introduction of such a fund. According to records published on the website of the Delaware Department of State Division of Corporations, the Wall Street giant had previously filed paperwork in Delaware for the fund.
After filing for a Bitcoin spot fund in June, this is BlackRock’s second big venture into crypto-centric ETFs. A rise in digital assets was stoked by this application, and additional issuers were enticed to join the fray as a result. The application comes as BlackRock recently filed a trust for Ethereum in Delaware, a move analysts interpreted as a preliminary to requesting for regulatory approval of an ETF.
According to the SEC filing, the fund’s shares would have the ticker “ETH” and closely follow the price of Ethereum owned by the trust. BlackRock subsidiary iShares would operate as the sponsor. An Ethereum exchange-traded fund (ETF) would make it possible for regular investors to obtain indirect exposure to the second-largest cryptocurrency by market capitalization. It has the potential to attract new investments worth billions of dollars.
The filing by Nasdaq addressed the agency’s differential treatment of spot and futures ETFs and cited the recent victory for Grayscale Investments, in which three judges ruled that the SEC has to re-review the firm’s bid for a spot bitcoin ETF. This has sparked optimism in the industry for a potential spot bitcoin product. Nasdaq said in a filing on Thursday that futures-based ether ETFs have been cleared by the SEC, clearing the door for spot ether products.
Given that the Commission has approved ETFs that offer exposure to ETH futures, which themselves are priced based on the underlying spot ETH market, the Sponsor believes that the Commission must also approve ETPs that offer exposure to spot ETH, like the Trust.According to the filing
When exactly BlackRock will submit a formal application to the SEC for approval of the ETF is still unknown. Several proposals for spot Bitcoin ETFs have been denied by the regulatory body due to fears of manipulation.