BlackRock Dives Deeper into Crypto with iShares Ethereum Trust Filing in Delaware

BlackRock has taken a significant step towards expanding its cryptocurrency offerings by filing to register a new iShares Ethereum Trust in Delaware. This move comes as the company awaits a critical decision from the Securities and Exchange Commission (SEC) on its spot bitcoin ETF application.

Today’s filing with the Delaware Department of State Division of Corporations is a clear indicator of BlackRock’s increasing commitment to the crypto space. While a spokesperson for BlackRock chose not to comment on the development, the market reacted positively, with Ether’s price seeing an approximate 8% surge to around $2,040.

BlackRock’s Strategic Movements in Cryptocurrency

The iShares brand, synonymous with BlackRock’s ETF products, made headlines earlier in June when the asset manager filed a registration statement with the SEC for the iShares Bitcoin Trust. This filing detailed the trust’s custodian and benchmark, signaling a potential new offering that could bridge the gap between traditional finance and cryptocurrency markets.

Although an iShares Ethereum Trust filing is not yet visible on the SEC’s website, the pattern of BlackRock’s actions suggests it may soon emerge, especially considering the Bitcoin Trust entity’s registration in Delaware preceded the SEC filing by a week.

The SEC’s Review and Market Movements

The SEC’s current review of multiple spot bitcoin ETF applications, including BlackRock’s, has the market on edge. The asset manager’s bitcoin ETF ticker, IBTC, has been listed on the Depository Trust & Clearing Corp’s website since August, catching the market’s attention only recently.

Anticipation is building as major trading firms, such as Jane Street, Virtu Financial, and Jump Trading, are reportedly in discussions to back BlackRock’s proposed spot bitcoin ETF with liquidity, should it receive the green light from regulators. The mere prospect of such an approval has already contributed to a rally in Bitcoin’s price over the past month.

BlackRock’s Crypto Ambitions Reflect Market Sentiment

Larry Fink, BlackRock’s CEO, recently remarked on the market’s eagerness for crypto integration, citing a surge in bitcoin’s price due to a mistakenly reported ETF approval as evidence of “pent-up interest in crypto.” This sentiment mirrors the steps BlackRock is taking to establish itself as a pivotal player in the cryptocurrency ETF arena.

With the industry watching, BlackRock’s filings signify more than just a foray into new investment products; they represent a growing convergence of traditional asset management and digital assets.