2023-11-10T07:13:39+00:00
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/ BlackRock has taken its first steps towards launching an exchange-traded fund focused on Ethereum, which has helped stimulate the current rise in the second largest cryptocurrency around the world.
Nasdaq, the stock exchange BlackRock is collaborating with on the upcoming ETF, on Thursday filed what is known as a 19B-4 form, the next step in the process of launching such funds. The giant American company had previously submitted the official documents required for the fund in the state of Delaware, according to documents published on the website of the Corporate Division of the Department of State in Delaware.
The move is BlackRock’s second-biggest move into the cryptocurrency-focused funds sector following its application to launch a spot bitcoin ETF in June, when the request helped spur a rally in digital asset prices and attracted other potential issuers to enter the fund race. Cryptocurrencies.
The price of Ethereum rose as much as 11% on Thursday, surpassing $2,000 and reaching the highest level since April, according to data compiled by Bloomberg. VanEck, Invesco, 21Shares and others have applied to launch spot Ethereum exchange-traded funds as well.
Cryptocurrency exchange-traded funds
“This move was very expected from my point of view, and it was just a matter of time, and not in doubt,” said James Seyphart, an analyst at Bloomberg Intelligence. “But it is clear that the big name (BlackRock) and its formal application in the state of Delaware led to A skyrocketing price of Ethereum. BlackRock declined to comment.
There are currently no ETFs that invest directly in Bitcoin or Ethereum in the United States, although a number of companies have already tried to launch them. For the cryptocurrency community, making these funds available to American investors will represent a major victory, as it will allow a greater number of investors to participate in the crypto sector. ETFs also tend to have cheaper management fees compared to other types of funds, making them more attractive to individual investors.
Issuers have repeatedly tried to launch Bitcoin exchange-traded funds for a decade now, but their attempts have been unsuccessful, but regulators are showing signs that they are more open to approval this time around. Earlier this year, the US Securities and Exchange Commission lost a case against asset management company Grayscale Investments, which was looking to transfer its Bitcoin holdings into an exchange-traded investment fund.
Some are also optimistic about approving the launch of cryptocurrency funds soon in light of BlackRock’s excellent track record in providing and launching ETFs previously.