BlackRock moves to launch Ethereum spot ETF, eyes Bitcoin ETF liquidity  |  Editor Nikhilesh Pawar

Published Nov 16, 2023 15:24

NEW YORK - BlackRock (NYSE:BLK), the world's largest asset manager, has taken significant steps toward expanding its cryptocurrency offerings. The company filed for an Ethereum spot exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC) and registered its iShares’ Ethereum Trust in Delaware on Tuesday. This move signals BlackRock's growing interest in providing its clients with diversified cryptocurrency investment vehicles.

In preparation for the potential approval of its Bitcoin ETF, BlackRock has secured commitments from prominent market makers Jane Street and Jump Trading to provide liquidity. This partnership, announced on Wednesday, is a strategic effort to ensure smooth trading and price stability for the proposed fund.

Despite the market's anticipation of regulatory approval for these ETFs, Ethereum experienced volatility in its trading price today. Early in the day, the digital currency traded above $2,100, reaching a local peak of $2,134 before retreating to around $1,900. Larry Fink, CEO of BlackRock, commented on the recent Bitcoin price rally as a sign of pent-up interest in cryptocurrencies.

The details surrounding how BlackRock will handle Ether staking and dividends were not disclosed in the filing. As the industry awaits further developments, the asset manager's latest actions underscore a commitment to integrating digital assets into traditional investment frameworks. With Coinbase (NASDAQ:COIN) Custody Trust Company as custodian and CF Benchmarks as benchmark provider for both the Ethereum and Bitcoin ETFs, BlackRock is positioning itself at the forefront of bridging the gap between cryptocurrencies and conventional finance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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