The prices of Bitcoin and Ethereum, the two most popular cryptocurrencies, rose on Tuesday after BlackRock, the world’s largest asset manager, filed for an Ethereum-based exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC).
The proposed ETF, which would be called the BlackRock Ethereum Trust, would track the price of Ethereum futures. If approved by the SEC, it would be the first spot Ethereum ETF to be listed on a U.S. exchange.
The news of BlackRock’s filing sent shockwaves through the crypto market, with Bitcoin and Ethereum both surging by more than 10% in the hours following the announcement. Ethereum, in particular, reached a high of $2,060, its highest level since April.
Analysts believe that BlackRock’s filing is a major sign of institutional adoption for Ethereum. The firm, which manages over $10 trillion in assets, has been cautiously warming up to the crypto market in recent years. In June, it announced that it would be allowing its clients to invest in Bitcoin futures, and it has also been exploring other ways to get exposure to the crypto asset class.
The approval of an Ethereum-based ETF would be a major milestone for the crypto industry. It would provide institutional investors with an easy and safe way to invest in Ethereum, and it could also help to legitimize the cryptocurrency in the eyes of regulators.
However, it is still too early to say whether the SEC will approve the BlackRock Ethereum Trust. The SEC has been hesitant to approve spot Bitcoin ETFs in the past, citing concerns about market manipulation and fraud. However, the agency has recently signaled that it may be more open to approving Ethereum ETFs.
In August, a federal appeals court ruled that the SEC was wrong to reject an application from Grayscale Investments to create a spot Bitcoin ETF. The court said that the SEC had not adequately explained why it believed that a spot Bitcoin ETF would be prone to manipulation.
The Grayscale ruling was seen as a major victory for the crypto industry, and it has paved the way for other companies to file for spot Ethereum ETFs. In addition to BlackRock, several other companies have also filed for Ethereum ETFs, including Invesco and Valkyrie.
The SEC is expected to rule on the BlackRock Ethereum Trust application in the coming months. If the ETF is approved, it would be a major boost for the Ethereum ecosystem and could help to propel the cryptocurrency to new heights.