The news of BlackRock taking initial steps toward filing for a spot Ethereum ETF has generated significant excitement in the crypto market. Following the firm’s registration of the iShares Ethereum Trust in Delaware, similar to its approach before filing for a spot Bitcoin ETF, market analysts and enthusiasts are optimistic about the prospects of an Ethereum-based ETF approval by the U.S. Securities and Exchange Commission (SEC).
Even though the SEC has not yet approved any spot Bitcoin ETF in the U.S., the prospect of a major financial institution like BlackRock venturing into the cryptocurrency space has created palpable enthusiasm. The market response has been positive, with the price of Ethereum immediately rising by 8% upon the news of BlackRock’s steps towards a spot ETH ETF.
If BlackRock proceeds with filing for spot ETH ETF approval and the SEC gives it the green light, the price of Ethereum is likely to gain significant momentum. A spot ETF requires the issuer to custody the underlying asset, meaning BlackRock would need to invest in and hold a substantial amount of Ether. This investment from a reputable financial institution would likely attract more capital into the market, benefiting the overall cryptocurrency ecosystem.
While there is no official confirmation from BlackRock regarding its intentions to file for a spot Ethereum ETF, the registration of the iShares Ethereum Trust in Delaware has been confirmed, sparking excitement and anticipation within the crypto community.