HIghlight:
- BlackRock filing for ether ETF
- Filing made through Nasdaq
- Shows growing crypto acceptance at major asset manager
- Ether prices jumped over $2100
BlackRock has filed plans to launch an exchange-traded fund (ETF) focused on the cryptocurrency ether, the native token of the Ethereum blockchain network. The proposed ETF by BlackRock would allow mainstream investors easier access to ether, similar to the asset management giant's recent filing for a bitcoin-based ETF product. BlackRock has been vocal in embracing cryptocurrencies after previously shying away from the asset class.
According to documents filed with regulators, the ether ETF would custody the cryptocurrency holdings with Nasdaq, a U.S. based exchange. BlackRock also has a market surveillance agreement in place with the exchange to monitor trading activity and detect potential manipulation.
The filing argues that existing futures-based ether ETFs rely on market surveillance
of the same spot exchanges, so surveillance should be seen as adequate for a spot ETH product as well. BlackRock asserts that regulators have already determined this market monitoring system is sufficient through approving the futures ETFs.
News of the BlackRock filing drove up ether prices to $2,100, as it signals growing institutional adoption of cryptocurrencies. However, regulatory approval is still pending and not guaranteed. BlackRock's CEO has become more optimistic on cryptocurrencies in a reversal of his previous critical stance.