BlackRock Expands Crypto Strategy with Planned Ethereum ETF

BlackRock, the world’s largest asset manager, has made a significant move in the cryptocurrency space by announcing plans to launch an exchange-traded fund (ETF) focused on Ethereum, the second-largest cryptocurrency by market capitalization. The ETF, which aims to hold Ethereum’s ether token (ETH), signals BlackRock’s deepening engagement in the digital assets market.

iShares Ethereum Trust Establishment

The asset manager has established a corporate entity called ‘iShares Ethereum Trust,’ which is registered in Delaware and aligns with BlackRock’s ETF division. This step indicates that the company is laying down the groundwork necessary for offering cryptocurrency-related investment products.

Ethereum’s Market Response

Following the announcement, Ethereum’s price soared to a daily high of $2,100, marking a six-month peak. The market’s positive reaction underscores the potential impact of mainstream financial institutions like BlackRock entering the cryptocurrency space.

Regulatory Hurdles and SEC’s Stance

In June 2023, BlackRock sought approval from the U.S. Securities and Exchange Commission (SEC) to launch a spot Bitcoin ETF. Although the SEC has been historically hesitant to approve spot ETFs tied to cryptocurrencies, there is speculation that the regulator might greenlight the 12 pending spot Bitcoin ETF applications, including BlackRock’s, within the next eight days, as reported by Coin Telegraph.

The SEC’s decision on these applications is highly anticipated, as approval could pave the way for more institutional investment in the cryptocurrency market, potentially leading to greater adoption and legitimacy of digital assets.