Crypto
BlackRock Files Ethereum ETF Application with SEC, Expanding Presence in Digital Asset Market
courtesy of bitcoinist.com
BlackRock's Latest Move
BlackRock, the world's largest asset manager, has officially submitted an application for an Ethereum exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC). This strategic move demonstrates BlackRock's increasing involvement in the rapidly growing digital asset market.
iShares Ethereum Trust
The proposed 'iShares Ethereum Trust' is designed to closely track the price performance of Ethereum (ETH), the second-largest cryptocurrency. The trust will exclude operational expenses and liabilities.
Positive Impact on Crypto Market
This development from BlackRock, a trillion-dollar firm, has had a positive impact on the crypto market. It highlights BlackRock's commitment to expanding its portfolio offerings in the digital assets sector and reflects the growing institutional interest in cryptocurrencies.
Operational Framework
BlackRock has submitted a Form S-1 Registration Statement to the SEC, providing details about the operational framework of the iShares Ethereum Trust. This document is typically used by companies planning to go public or register new securities for sale.
Partnership with Coinbase Custody Trust Company
BlackRock has chosen Coinbase Custody Trust Company as the primary custodian for the Ethereum holdings. This partnership highlights the collaboration between traditional financial giants and crypto-native firms.
Listing and Trading on NASDAQ
The shares of the iShares Ethereum Trust are set to be listed and traded on NASDAQ. The specific ticker symbol has not yet been announced. This move signifies a significant step towards integrating crypto within mainstream investment platforms.
Regulatory Context
In its filing, BlackRock clarifies that the iShares Ethereum Trust will operate outside the scope of the US Investment Company Act. The sponsoring entity is not registered as an investment adviser with the SEC. Additionally, the Trust is not classified as a commodity pool by the US Commodity Exchange Act, and its sponsor is not regulated by the US Commodity Futures Trading Commission as a commodity pool operator.
Positive Market Response
Following the filing announcement, Ethereum (ETH) has continued its bullish trend, experiencing a nearly 1% increase in the past 24 hours and trading above $2,000.
Featured image from Unsplash, Chart from TradingView
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