BlackRock, the world’s largest investment manager, has applied to introduce an Ethereum Trust. It marks a significant stride in mainstream cryptocurrency adoption.
This development arrives amid heightened anticipation for the approval of BlackRock’s proposed spot Bitcoin ETF (exchange-traded fund), suggesting a bullish outlook on the future of the crypto market.
Institutions Can Get Ethereum Exposure
According to a recent filing, the iShares Ethereum Trust was registered in Delaware. The move was orchestrated with BlackRock’s managing director, Daniel Schwieger, at the application process’s helm.
Since the announcement, Ethereum’s value has surged past the $2,000 threshold, reflecting investor optimism spurred by BlackRock’s involvement.
BlackRock’s push into the cryptocurrency industry does not stop with the iShares Ethereum Trust. Earlier in the year, the investment titan submitted plans to launch a spot Bitcoin ETF in the US. It is currently under the scrutiny of the Securities and Exchange Commission.
Trusts like these, typically closed-end funds, provide a stock market-listed vehicle offering select investors exposure to assets previously beyond their reach, a concept dating back to the first trust in 1868.
The cryptocurrency market has been abuzz with speculation regarding BlackRock’s motives, with some suggesting insider knowledge. However, Matt Hougan of Bitwise Asset Management provided a different perspective, speculating that BlackRock’s decision reflects a readiness in the market for a spot Bitcoin ETF.
Bitcoin’s value soared 41%, from $25,556 to $36,120, bolstering this sentiment after BlackRock filed its ETF, showcasing an impressive rally.
Ethereum’s recent performance further cements that BlackRock’s foray into cryptocurrency could spell a similar uptick for ETH. Especially since it has been unable to break the $2,000 barrier since mid-August.
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Source: https://beincrypto.com/blackrock-registers-ethereum-trust-in-delaware-reports/