The world’s largest asset manager has filed with the U.S. SEC to launch a spot-based Ether (ETH) ETF.
BlackRock, the world’s largest asset management company with over $9 trillion in assets, is diving deeper into crypto. On November 9, BlackRock’s iShares division submitted an official application with the United States Securities and Exchange Commission (SEC) to launch a spot exchange-traded fund (ETF) tracking ETH, the second largest crypto asset by market capitalization.
If approved, the fund would trade on the Nasdaq exchange and offer traders exposure to ETH. Notably, the fund will purchase and sell ETH on behalf of investors with exposure reflected as publicly traded shares on the exchange.
Before its SEC filing, iShares had registered the planned iShares Ethereum Trust as a Delaware corporation, a first step signaling its intent to launch such a product. However, an official filing means that the SEC has now received the company’s request for the proposed rule change to list the product and will initiate a review process as required by law.
Meanwhile, news of BlackRock’s Ether ETF filing has positively impacted the price of ETH, with the asset rising by 9% in the past 24 hours. ETH is currently trading around $2090, representing a 17% increase in the past seven days and a market cap of $252 billion.
BlackRock Doubling Down on Crypto
BlackRock’s spot ETF application follows its widely publicized move to launch a similar product for Bitcoin (BTC). Per a Fox News report, BlackRock remains increasingly confident of securing approval for the spot Bitcoin ETF early next year.
Yet, the fund manager’s move to file for an Ether ETF catches the eye for another reason. It may be considered an indication that BlackRock is eyeing exposure to the broader crypto asset industry and not just Bitcoin.
In a recent interview, BlackRock CEO Larry Fink described the surge in crypto prices as a “flight to quality.” The company’s latest Ether ETF backs up that claim and further backs growing evidence that institutional demand for crypto assets is on the rise.