BlackRock, the world's largest asset manager, has taken a significant step into the cryptocurrency space by registering an Ethereum trust in Delaware, USA. This move follows the earlier registration of a Bitcoin trust in June, right before filing a Bitcoin ETF application with the U.S. Securities and Exchange Commission (SEC). The newly registered entity, named iShares Ethereum Trust, is part of the iShares brand, which belongs to BlackRock. The incorporation date for this trust is November 9, and its registered agent is Daniel Schweiger, a managing director at BlackRock.
The SEC has seen several applications for spot Ethereum Exchange Traded Funds (ETFs) in the past, but none have received approval so far. Recently, on September 27, the SEC delayed its decision on the applications submitted by ARK 21Shares and VanEck, with the decisions expected by December 25 or 26. Other entities like Invesco, Galaxy Digital, and Grayscale have also filed for spot Ethereum ETFs, indicating a growing interest in expanding cryptocurrency investment options.
On the same day as BlackRock's Ethereum trust registration, ARK Invest and 21Shares jointly announced the launch of new digital asset ETFs. These funds will focus on investing in long-term Bitcoin (BTC) and Ethereum (ETH) futures contracts, showcasing the increasing diversity and complexity of investment products in the cryptocurrency market.
BlackRock's involvement in cryptocurrency, particularly with the registration of an Ethereum trust, has led to positive market sentiment. Following this news, the price of Ethereum rose by 6.98%, breaking the $2,000 threshold and reaching its highest level since April. This development is contributing to renewed interest and potential momentum for Ethereum, which had experienced a relatively subdued performance in recent times.
