BlackRock Confirms Creation of Ethereum Spot ETF, ETH Jumps to 6-Month High

Financial giant BlackRock confirmed earlier rumors of an Ethereum spot ETF, sending ETH prices skyrocketing.

BlackRock confirms creation of Ethereum spot ETF. Photo: Bloomberg

On the evening of November 9, the cryptocurrency community was abuzz with news that BlackRock had prepared procedures to open a spot ETF on Ethereum upon registration in Delaware. This information, although not yet confirmed, was enough to push the price of Ethereum from $1,950 to $2,050.

At dawn on November 10, BlackRock officially confirmed the existence of the Ethereum spot ETF by submitting a proposal to establish it to the United States Securities Commission (SEC).

The fund will have the official name iShares Ethereum Trust, listed and supported for trading on the Nasdaq stock exchange. The custodian of ETH for the fund will be the cryptocurrency exchange Coinbase.

Therefore, this is the second spot ETF offering created by BlackRock for cryptocurrencies, after the iShares Bitcoin Trust.

In addition to BlackRock, several other organizations including Grayscale, Ark Invest, VanEck, ProShares and Valkyrie recently filed applications with the SEC to open Ethereum spot ETFs, after the Securities Commission approved a series of Ethereum futures in early October .

However, the probability that an Ethereum spot ETF will be approved in the near future is not high, because the SEC usually takes many months to evaluate it, and so far the commission has not authorized any Bitcoin spot ETF proposals due to fraud concerns and market manipulation. .

However, many analysts believe that the SEC is showing many signs of preparing to approve the Bitcoin spot ETF, especially after facing a legal failure against Grayscale. They also set a time period from November 9th to November 17th for the SEC to simultaneously approve 12 Ethereum spot ETF proposals.

ETH price on the morning of November 9 continued to extend its upward momentum to USD 2,132 – the highest since April 2023 – despite the slight correction in Bitcoin and other altcoins.

1h chart of the ETH/USDT pair on Binance at 08:00 on November 10, 2023

Two liquid currencies for staking on Ethereum, Lido (LDO), RocketPool (RPL), and ssv.network (SSV), are also enjoying Ethereum’s growth.

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