Ethereum Surges on BlackRock ETH ETF Plans
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Ethereum, the native cryptocurrency of the Ethereum blockchain, experienced a notable surge, reaching a seven-month high on Thursday. This ascent was attributed to the confirmation from BlackRock, the world’s largest asset manager, regarding its plans to launch an exchange-traded fund (ETF) tracking the spot price of Ethereum.
UPDATE: BlackRock #Ethereum ETF confirmed. They just submitted a 19b-4 filing with Nasdaq pic.twitter.com/pLhuhhK7jo
— James Seyffart (@JSeyff) November 9, 2023
In a filing revealed by Nasdaq, BlackRock outlined its intention to seek regulatory approval from the Securities and Exchange Commission (SEC) for the ETF, which will be listed on the U.S. exchange.
That said, Coinbase, a prominent U.S.-based crypto exchange, is slated to serve as the custodian for the Ethereum held within the ETF, while an undisclosed third party will manage its cash holdings. The strategic market surveillance agreement between BlackRock and Coinbase is considered pivotal in enhancing the ETF’s prospects for SEC approval. As a result of this development, the price of Ethereum surpassed $2,100, marking a 2% increase within 24 hours.
BlackRock’s foray into the cryptocurrency ETF space is indicative of the growing interest in and acceptance of digital assets among institutional investors. The asset manager, overseeing a staggering $9 trillion in assets, previously filed an application for a spot bitcoin ETF in June, pending SEC approval. Despite the SEC’s historical reluctance, industry observers speculate that BlackRock’s substantial reputation and influence could sway the regulatory decision.
If approved, BlackRock’s ETFs could potentially catalyze mainstream adoption of cryptocurrencies. These investment products offer a regulated and convenient avenue for investors to gain exposure to the evolving asset class. The move signifies bullish sentiment in the crypto space, portraying a broader shift towards embracing digital assets on a larger scale.
Incoming Pullback for Ethereum?
At the time of writing, Ethereum trades at $2,090, down 1.9% from its intraday peak of $2,136. As we head into the weekend, we can expect to see some bearish pullbacks as the cryptocurrency eases out of overbought conditions.
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