BlackRock Takes Steps Towards Ethereum Investment with iShares Ethereum Trust Registration
Many have agreed that the registration could be an initial step to ETF filling.
BlackRock Files for Delaware space
In a significant move, financial giant BlackRock has registered an iShares Ethereum Trust in Delaware. Thus, signaling potential interest in Ethereum investments.
This registration doesn't mean an immediate application for an Ethereum ETF with the Securities and Exchange Commission (SEC). However, industry analysts are drawing parallels. This is because of BlackRock's prior approach before filing for a Bitcoin ETF.
The $8.5 trillion asset manager submitted a similar registration for a Bitcoin ETF a week before officially applying. BlackRock has not provided comments on the recent registration. Nonetheless, this strategic move aligns with the trend among companies to incorporate in Delaware. This Is due to Delaware's corporate-friendly environment, offering tax benefits and legal protections.
Delaware's appeal has led to about 60% of Fortune 500 companies choosing to register there. When BlackRock filed for the iShares Bitcoin Trust in June, experts noted its historically low rejection rate by the SEC. However, past success doesn't guarantee approval. Also, analysts are observing a window of just over a week from today. If things go well, the SEC could theoretically approve 12 Bitcoin ETF applications.
Ethereum Influence is Growing
Simultaneously, there is a growing interest among potential issuers in launching Ethereum ETFs. Grayscale recently filed to convert its Grayscale Ethereum Trust into a spot ETF. Grayscale is a major asset manager owned by Digital Currency Group. Additionally, Ethereum's price experienced a positive surge on the news. CoinGecko reported that on Thursday morning, the price of ETH surpassed $2,000 for the first time since July.
The move by BlackRock reflects the growing significance of Ethereum in the finance industry. There is also its increasing demand for investment products tied to this leading blockchain platform. Ethereum-related financial instruments are gaining traction due to the cryptocurrency market's evolving maturity. And the integration of blockchain-based assets into traditional investment portfolios.