According to a press release on November 9, Nomura Holdings, Japan’s largest investment bank, is launching an Ethereum-based fund for institutional investors through its digital assets subsidiary Laser Digital Asset Management.
Called the “Laser Digital Ethereum Adoption Fund SP,” this fund is the second in a series of digital adoption investment solutions introduced by Laser Digital, following the launch of the Laser Digital Bitcoin Adoption Fund in September.
Ethereum Adoption Fund
The new fund will primarily target long-only spot positions in Ethereum, enhancing yield through an innovative strategy that involves staking the ETH held by the fund. This fund is managed as a segregated portfolio within Laser Digital Funds SPC, a segregated portfolio company registered in the Cayman Islands.
Laser Digital has partnered with Komainu to serve as the custodian for the fund’s assets, a role the company also performs for Laser Digital’s Bitcoin fund. Komainu is regulated under the U.K. Financial Conduct Authority and the Virtual Asset Regulatory Authority in Dubai.
Sebastian Guglietta, head of Laser Digital Asset Management and former Nomura Chief Scientist Officer, expressed the view that Ethereum is the technological catalyst that will digitize the economy and stated that, in the long run, exposure to Ethereum is crucial for capturing the structural technology trend of the web 3 economy.
Fiona King, head of distribution at Laser Digital Asset Management, explained that the fund will simplify investing in digital assets and provide a secure way for institutional investors to gain exposure to the industry, as it is fully regulated.
ETH spikes amid positive news
In addition to the Nomura announcement, documents surfaced on November 9 showing that BlackRock registered an Ethereum-based exchange-traded fund (ETF) in the state of Delaware on the same day under the name iShares Ethereum Trust. BlackRock similarly filed its Bitcoin ETF a week before applying with the SEC.
News of large traditional financial institutions diving into Ethereum caused the token to rally and break past the $2000 resistance level. At the time of the press, ETH was trading at $2,007, more than 5.8% over 24 hours, according to CryptoSlate data.