BlackRock, the global asset management giant, has just made a strategic move that could significantly alter access to the cryptocurrency market for investors around the world. The company, through its iShares division, formalized the creation of the iShares Ethereum Trust in the State of Delaware, a crucial step prior to applying for an Ethereum ETF with the Securities and Exchange Commission (SEC).
This step is seen as a parallel to the company’s previous initiative, which registered the iShares Bitcoin Trust a week before asking the SEC for approval for a Bitcoin ETF. The new move indicates that BlackRock is positioning itself to quickly follow a similar path with Ethereum, providing investors with the ability to gain exposure to the second-largest cryptocurrency by market capitalization.
The iShares Ethereum Trust has just been registered in Delaware.
For context, BlackRock’s iShares Bitcoin Trust was registered in a similar manner 7 days before they filed the ETF application with the SEC. Details below.
— Summers (@SummersThings) November 9, 2023
BlackRock’s offering of an Ethereum ETF could simplify the process of investing in cryptoassets, allowing investors to buy and sell shares in the fund in the same way they would with shares in publicly listed companies, without the need to directly own the digital asset.
BlackRock’s size and influence in the financial sector are factors that could have considerable weight in regulators’ decisions. The company manages almost US$10 trillion in assets and its more assertive entry into the cryptocurrency market is seen as a sign of the sector’s maturity and growth potential.
Although the SEC has so far rejected all proposals for cryptocurrency spot ETFs, the change in the commission’s leadership and the current state of the financial market fuel expectations of a possible opening for these investment instruments. With BlackRock preparing to move forward with the Ethereum ETF, the market is paying attention to possible changes that could be on the horizon.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.