BlackRock proposes Ethereum ETF as Grayscale’s postponed by SEC

In a bold move, BlackRock, the renowned fund manager, recently submitted an application to the SEC to create an exchange-traded fund for Ethereum cash . This comes at a time when the regulator has just announced an extension to its decision deadline for the Grayscale Ethereum Exchange Traded Fund (ETF).

A new application from BlackRock for an Ethereum ETF

While the SEC has decided to extend the evaluation of Grayscale, another major figure comes back on the scene: BlackRock the world’s largest asset manager. Indeed, BlackRock has submitted an application to the Securities and Exchange Commission for the creation of an Ethereum spot Exchange Traded Fund (ETF).

The brand-new iShares Ethereum Trust, aimed at globally reflecting ether price fluctuations was officially presented in the form S-1 filed by iShares on Wednesday, September 15.

This significant move by BlackRock comes a week after the formal registration of the iShares Ethereum Trust entity with the Division of Corporations of the Delaware Department of State.

The Nasdaq quickly confirmed the application for this innovative ETF, consolidating the commitment of BlackRock in the realization of a cash ETF dedicated to ether (ETH), the world’s second-largest cryptocurrency in terms of market capitalization.

Grayscale seeks SEC approval for Ethereum ETF

September, Grayscale Investments has filed yet another application to turn its Ethereum trust into an ETF, offering investors the chance to acquire shares predicting the future price of Ethereum (ETH). However, the SEC seems reluctant to give its approval.

Securities and Exchange Commission has recently declared the extension of the Grayscale Ethereum ETF. A decision in line with the SEC’s usual practices towards crypto-related products, raising questions about the potential timing of ETF approval.

The SEC has indicated that its decision was motivated by the need for a thorough analysis of the regulatory change proposed by Grayscale Investments.

The Commission believes that a longer period for taking action on the proposed rule change should be designated to allow sufficient time to consider the proposed rule change and the issues raised therein.

SEC statement

At present Grayscale is in dispute with the SEC over the ETF transition Grayscale Bitcoin Trust. The approval of Bitcoin ETFs is being scrutinized by the market and is at the origin of the recent pump of the crypto prices.

Bitcoin Spot ETF applications still pending

The extension of its application assessment coincides with the SEC’s suspension of several Bitcoin Spot ETF applications. Leading financial entities such as BlackRock are showing increasing interest in ETF products.

Although Bloomberg Intelligence analysts anticipate a high 90% probability for a Bitcoin ETF in the US by January 10, it’s crucial to point out that the SEC has automatically rejected approval of Bitcoin ETFs in the past. A decision it always justifies on the grounds of market manipulation concerns.

The anticipation of ETF approval continues to cause a stir in the crypto sector. However, the Securities and Exchange Commission (SEC) continues to display a marked reluctance to give the green light to either Bitcoin or Ethereum ETFs. The hope remains that, this time, the SEC will demonstrate its cooperation and openness in the face of these major developments.