BlackRock Pursues Spot Ethereum ETF, Eyes on Market Impact



BlackRock, the world's leading asset management firm, has made a significant move in the cryptocurrency space with its latest application for a spot Ethereum ETF. Following the establishment of the iShares Ethereum Trust in Delaware, the company has now submitted the S-1 prospectus for this innovative product to the U.S. Securities and Exchange Commission (SEC).

A Bold Step in Cryptocurrency ETFs

This Ethereum ETF initiative marks BlackRock's second venture into cryptocurrency-related exchange-traded funds, succeeding their earlier application for a spot Bitcoin ETF.

The Path to the Ethereum ETF

CryptoPotato recently reported on BlackRock’s preparatory steps for this move, starting with the registration of the “iShares Ethereum Trust” in Delaware. This step was a clear indication of BlackRock’s plans to launch an ETF that mirrors Ethereum's performance.

Official Filing with SEC

Today, BlackRock has formally lodged the S-1 prospectus with the United States’ securities watchdog. True to their previous Bitcoin ETF application, BlackRock has again chosen Coinbase as the Custodian for the underlying ETH assets.

Staking ETH: An Unanswered Question

The prospectus does not provide clarity on whether the Trust will engage in staking ETH or distribute dividends to shareholders from any potential yield.

Ethereum’s Price Reaction

The initial news about the iShares Ethereum Trust registration had a swift impact on Ethereum's price, propelling it by $200 within hours. However, as of the latest reports, the second-largest cryptocurrency is trading just below the $2,100 mark, following a market-wide recovery in the past 24 hours.

No XRP ETF on the Horizon

In the midst of these developments, BlackRock has debunked circulating rumors regarding its intention to file for a spot Ripple (XRP) ETF. This clarification came in response to reports about the registration of an XRP Trust by BlackRock in Delaware.

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