BlackRock, the world’s largest asset manager, has filed for a spot Ether (ETH) exchange-traded fund (ETF) on November 9, following its filing for a spot Bitcoin ETF. The news of BlackRock’s intention to file for an Ether spot ETF had a bullish effect on the crypto market, leading to a surge in ETH prices, surpassing the critical resistance level of $2,000 for the first time in over a year.
The filing of BlackRock’s ETH ETF was confirmed after its 19b-4 filing with Nasdaq became public. Nasdaq filed the 19b-4 form on behalf of the asset manager with the U.S. Securities and Exchange Commission (SEC) for a proposed ETF called the “iShares Ethereum Trust.” This move signals BlackRock’s intention to expand its ETF offerings beyond Bitcoin and has sparked various reactions from the crypto community.
In response to the news, Bitcoin proponent Udi Wertheimer referenced the popular meme of MicroStrategy CEO Michael Saylor, who believes that Bitcoin (BTC) is the only true asset and that there is no second best. Other crypto proponents also rejoiced in the news, celebrating the growing institutional interest in cryptocurrencies beyond Bitcoin.
The announcement of BlackRock’s ETH ETF filing had a significant impact on the crypto market, with altcoins also experiencing notable gains before a flash crash. Nearly $1 billion in open interest was wiped out of the market within an hour, as millions in long and short positions were liquidated due to sudden price fluctuations.
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The interest in a spot Ether ETF from a major institutional investor like BlackRock has raised speculation about the outlook for Ethereum’s yield and its potential impact on the broader crypto market. According to Raoul Pal, an ETH ETF is the “holy grail for asset managers as they can capture the yield and only give price performance to the ETF holders.” Many within the crypto community also believe that BlackRock’s interest in an ETH ETF suggests that its spot Bitcoin ETF is a foregone conclusion.
Sassal, an independent Ethereum educator, emphasized the impact of the ETF on ETH yields, suggesting that traders are likely to “absolutely salivate over the real yield that a staked spot ETH ETF can offer.” This sentiment reflects the potential for an ETH ETF to provide investors with exposure to Ethereum’s yield-generating capabilities, particularly through staking.
The announcement of BlackRock’s Ether ETF filing has reignited discussions about the potential for ETFs to bring a new wave of institutional and retail investor interest to the crypto market. With growing interest from major asset managers in both Bitcoin and Ethereum ETFs, the broader crypto market is poised for further institutional adoption and potentially increased liquidity.
Overall, the filing of a spot Ether ETF by BlackRock represents a significant development for the cryptocurrency market, indicating a growing acceptance and integration of digital assets into the traditional finance ecosystem. As regulatory frameworks continue to evolve, the approval and launch of Ether and Bitcoin ETFs could pave the way for greater accessibility and participation in the crypto market, marking a new chapter in the ongoing mainstream adoption of digital currencies.
