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BlackRock Investments Seeks SEC Approval for Ethereum Trust

BlackRock Investments Files for Ethereum Trust with the SEC

Nov 16, 2023
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The investment manager aims to broaden crypto accessibility with the launch of an Ethereum Trust.

BlackRock Investments has submitted an S-1 prospectus for an Ethereum Trust to the US Securities and Exchange Commission (SEC). The investment manager, which previously filed for a Bitcoin exchange-traded fund (ETF) in June, is poised to play a pivotal role in expanding crypto accessibility.

BlackRock has proposed the launch of its iShares Ethereum Trust with the US SEC in Delaware. The Trust, which will be listed on the Nasdaq and use the CME CF Ether-Dollar Reference Rate, is set to launch as soon as approval is granted. It remains uncertain from the S-1 filing whether BlackRock intends to stake Ethereum on behalf of its clients. Staking is a process that allows investors to earn rewards by locking tokens to secure the Ethereum blockchain.

News of a registration filing for a BlackRock Ethereum Trust application emerged on Friday. Daniel Schweiger, who is listed on LinkedIn as a director at BlackRock, appears to have spearheaded the application in Delaware. BlackRock’s filings are often seen as indicators for others to follow. However, ARK Invest and its partner 21 Shares had already filed an S-1 for an Ethereum ETF in September. Later, Grayscale Investments sought to convert its Ethereum Trust into a spot ETF.

Following the publication of BlackRock’s filing, Ethereum reached a peak of $2,079.50 before dropping to $2,054.67 at press time. It has seen a 1.9% increase in the last 24 hours.

The US SEC has until Nov. 17 to approve, reject, or delay Bitcoin ETF applications from nine financial firms, including BlackRock, WisdomTree, and Valkyrie. The impact of these rollouts on investors is still a topic of debate, with various experts expressing differing opinions in recent days.

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