BlackRock has taken the first step towards filing for an Ether ETF with the registration of the iShares Ethereum Trust in Delaware.
This move is reminiscent of the registration of BlackRock’s iShares Bitcoin Trust, which occurred seven days before filing for the ETF application with the U.S. Securities and Exchange Commission (SEC).
In an industry eagerly awaiting the approval of a spot Bitcoin ETF, BlackRock’s action may signal a significant moment for Ethereum, highlighting its potential as an asset class in institutional investment portfolios.
Despite these positive signs, it’s important to remember the SEC’s handling of Bitcoin ETFs. In October 2023, SEC had not approved the iShares Bitcoin ETF despite rumors suggesting otherwise. The regulator had delayed its decision on multiple proposed rule changes, including applications from top firms like Fidelity (Wise Origin), VanEck, WisdomTree, and Invesco.
While BlackRock’s iShares Ethereum Trust registration is a significant development, it introduces a period of uncertainty. The SEC’s previous reluctance to approve Bitcoin ETFs could cast a shadow over BlackRock’s Ethereum trust, leading to potential new cycles of applications, approvals, delays, and rejections.
The crypto community is closely monitoring these developments following game-changing events such as Grayscale’s court victory and BlackRock’s entry into the market. In this context, Ethereum ETFs could be the next frontier. However, all attention is currently on the SEC as the industry awaits its decision on the pending rule changes and the potential approval of BlackRock’s iShares Ethereum Trust.
BlackRock’s Ethereum Trust filing is another important narrative to monitor closely as the crypto industry continues to evolve and mature. These developments highlight the increasing intersection of traditional finance and digital asset markets, suggesting a future where digital currencies like Ethereum may become more common in institutional investment portfolios.