BlackRock, the world’s largest asset manager, submitted an S-1 application to the SEC on November 15, 2023, signaling a crucial milestone in the process of launching its Ethereum ETF. This formal filing comes following Nasdaq’s earlier submission of BlackRock’s proposed Ethereum spot ETF application to the SEC, confirming BlackRock’s commitment to the Spot ETH ETF by registering Shares Ethereum Trust last week.
BlackRock’s strategic custodianship
Here, BlackRock’s choice of Coinbase as the custodian for the underlying ETH solidifies a strategic partnership for the ETF’s infrastructure. For those unfamiliar with the process, in the realm of crypto spot ETFs, Form S-1 is a necessary document for crypto firms in the United States looking to offer new securities to the public. BlackRock’s aim with this submission is to introduce the Spot ETH ETF to the market.
Parallel progress with spot Bitcoin ETF
This development follows closely BlackRock’s progress with its spot Bitcoin ETF, which is also nearing approval. The crypto community is eagerly watching, given that after the filing of the spot Bitcoin ETF in June, Bitcoin experienced a significant surge of over 18% in a single day.
The filing itself doesn’t provide details on whether the Trust plans to actively stake ETH and distribute dividends to shareholders from the generated yield.
The news has caused a surge in the cryptocurrency market, with the current ETH price up by 2.5% and hovering near its strong resistance zone. Notably, last week, the registration of BlackRock’s iShares Ethereum Trust had an immediate impact on ETH price, causing it to soar by $200 in just an hour.
Adding to the intrigue, a report by Todayq News on November 16, 2023, raises questions about the recent accumulation of a substantial 88,000 ETH, valued at about $180 million. The report speculates whether someone had advanced knowledge of this news before it became public.