The price of ether surged on bets that BlackRock Inc. is gearing up to file for an exchange-traded fund that would be centered on the second-largest cryptocurrency.
The Wall Street behemoth registered paperwork in Delaware for the iShares Ethereum Trust, according to documents posted to the Delaware Department of State Division of Corporations website. The move marks BlackRock’s second major foray into crypto-centric ETFs after it filed for a bitcoin spot fund in June. That application helped spur a rally for digital assets and lured other issuers into getting into the race.
The price of ether rose as much as 8.6% on Thursday, crossing above $2,000 and hitting the highest level since April, data compiled by Bloomberg show. VanEck, Invesco, 21Shares and others have filings for spot-ether ETFs as well.
“This was fully expected in my eyes and was just a matter of when, not if,” said Bloomberg Intelligence analyst James Seyffart. “But BlackRock’s name is obviously huge and just seeing this registration in Delaware sent ether prices skyrocketing.”
BlackRock declined to comment.
There is currently no trading in U.S. ETFs that directly hold bitcoin or ether, though a number of companies are attempting to get them off the ground. For the crypto community, having such funds available for trading to U.S. investors would be a win, allowing a greater number of investors to participate in the space. ETFs also tend to come with cheaper management fees than other types of funds, making them more appealing to retail investors.
Issuers have been trying their hand at bitcoin ETFs for a decade, with no luck, though regulators seem to be showing signs of being more open to them this time around. Earlier this year, the Securities and Exchange Commission lost a case against asset-manager Grayscale Investments, which is looking to convert a bitcoin trust into an ETF.
BlackRock’s stellar record of filing and launching ETFs has given some the impression that spot-crypto funds could receive the green-light soon.
This article was provided by Bloomberg News.