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In a noteworthy move, exchange-traded fund (ETF) behemoth BlackRock, which manages around $9 trillion in assets globally, is considering the introduction of an Ethereum-based ETF. The information was found on the website of the Delaware Department of State and pertains to a recent filing for an iShares Ethereum (ETH) Trust.
Although BlackRock mentions in the filing that it is considering creating an Ethereum ETF, no formal proposal has yet been filed with the U.S. Securities and Exchange Commission (SEC). This action comes after BlackRock’s June 15 filing with the SEC to introduce a spot Bitcoin ETF, marking its previous entry into the bitcoin ETF market.
The proposed Ethereum ETF is in line with the recent spike in ether’s price, which is now at almost $2,030, up more than 8% in the previous day at the time of filing.
If BlackRock moves forward with the Ethereum ETF, it will follow in the footsteps of other financial companies who are attempting to provide ETFs that are directly linked to holdings of Ether, like Ark Invest, 21Shares, and VanEck. Grayscale Investments started the process on October 2 to convert its Ethereum Trust into a spot Ether fund, marking another move in this direction. Additionally, businesses that provide spot ether products, such as Hashdex and Invesco, have filed with the SEC.
The action taken by BlackRock indicates that institutional investors are becoming more interested in establishing cryptocurrency funds that go beyond Bitcoin. Even while there isn’t an official proposal yet, the investigation into the possibility of an Ethereum ETF highlights how established financial organizations are starting to recognize the potential of cryptocurrencies.