BlackRock and NASDAQ have outlined why the SEC needs to approve the investment company\u2019s new spot Ethereum exchange-traded fund (ETF) filing. According to the filing with the SEC, approval of a Spot ETH ETP would represent a major win for the protection of U.S. investors in the crypto asset space.\u00a0<\/p>\n
If approved, the iShares Ethereum Trust would allow regular investors to trade Ether, the world\u2019s second-largest cryptocurrency by market cap, as easily as stocks can be traded.\u00a0<\/p>\n
BlackRock, the world\u2019s largest asset manager, recently applied to the SEC<\/a> to launch an Ethereum exchange-traded fund (ETF) linked to the spot price of Ethereum. BlackRock wasn\u2019t the first investment company to make this type of application, as hedge fund Ark Invest already filed for a Spot Ethereum ETF<\/a> in September. However, the news of BlackRock\u2019s filing sent Ethereum surging more than 11% in less than 24 hours. As a result, ETH broke over the strong<\/a> $2,000 resistance level for the first time in seven months<\/a>.<\/p>\n BlackRock\u2019s Spot ETF is called the \u201ciShares Ethereum Trust\u201d and is sponsored by Ishares Delaware Trust Sponsor LLC, a subsidiary of Blackrock Inc. Coinbase, the largest crypto exchange in the US, acts as the custodian for the Trust\u2019s ether holdings, which are to be traded on the NASDAQ exchange.<\/p>\n In its SEC filing, NASDAQ asked for a proposed rule change in order for it to list and trade shares of the ETF. According to the filing, US investors, for the most part, have lacked a US-regulated way to gain exposure to Ethereum investments. It also argues that most of the current methods are risky and subject to high trading fees and volatile discounts.\u00a0<\/p>\n For example, an investor who purchased the largest OTC ETH Fund in January 2021 and held the position at the end of 2022 would have had a 30% loss due to the change in the premium\/discount, even if the price of ETH did not change. However, a spot ETH ETP like the proposed iShares Ethereum Trust ETF would better protect investors against the risk of losses through fraud and high premiums.<\/p>\n \u201cTo this point, approval of a Spot ETH ETP would represent a major win for the protection of U.S. investors in the cryptoasset space,\u201d the filing said.<\/p>\n Despite spot crypto ETFs being available in other countries, including Germany, France, and Canada, the SEC has been hesitant to greenlight a crypto ETF in the US, and 12 Bitcoin spot ETFs<\/a> are currently waiting for approval.\u00a0<\/p>\n A US Spot Ethereum ETF would significantly boost interest and confidence in Ethereum and ultimately drive the asset to new highs<\/a>. The hype leading up to the approval may also push the asset to a new yearly high.<\/p>\n ETH is up by more than 60% this year<\/a> and has outperformed BTC in the past few days. It is currently trading at $2,060 and analysts believe a bullish cross over $2,150<\/a> would signal the end of the bear market for ETH.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n BlackRock and NASDAQ have outlined why the SEC needs to approve the investment company\u2019s new spot Ethereum exchange-traded fund (ETF) filing. According to the filing with the SEC, approval of a Spot ETH ETP would represent a major win for the protection of U.S. investors in the crypto asset space.\u00a0<\/p>\n If approved, the iShares Ethereum Trust would allow regular investors to trade Ether, the world\u2019s second-largest cryptocurrency by market cap, as easily as stocks can be traded.\u00a0<\/p>\n BlackRock, the world\u2019s largest asset manager, recently applied to the SEC<\/a> to launch an Ethereum exchange-traded fund (ETF) linked to the spot price of Ethereum. BlackRock wasn\u2019t the first investment company to make this type of application, as hedge fund Ark Invest already filed for a Spot Ethereum ETF<\/a> in September. However, the news of BlackRock\u2019s filing sent Ethereum surging more than 11% in less than 24 hours. As a result, ETH broke over the strong<\/a> $2,000 resistance level for the first time in seven months<\/a>.<\/p>\n BlackRock\u2019s Spot ETF is called the \u201ciShares Ethereum Trust\u201d and is sponsored by Ishares Delaware Trust Sponsor LLC, a subsidiary of Blackrock Inc. Coinbase, the largest crypto exchange in the US, acts as the custodian for the Trust\u2019s ether holdings, which are to be traded on the NASDAQ exchange.<\/p>\n In its SEC filing, NASDAQ asked for a proposed rule change in order for it to list and trade shares of the ETF. According to the filing, US investors, for the most part, have lacked a US-regulated way to gain exposure to Ethereum investments. It also argues that most of the current methods are risky and subject to high trading fees and volatile discounts.\u00a0<\/p>\n For example, an investor who purchased the largest OTC ETH Fund in January 2021 and held the position at the end of 2022 would have had a 30% loss due to the change in the premium\/discount, even if the price of ETH did not change. However, a spot ETH ETP like the proposed iShares Ethereum Trust ETF would better protect investors against the risk of losses through fraud and high premiums.<\/p>\n \u201cTo this point, approval of a Spot ETH ETP would represent a major win for the protection of U.S. investors in the cryptoasset space,\u201d the filing said.<\/p>\n Despite spot crypto ETFs being available in other countries, including Germany, France, and Canada, the SEC has been hesitant to greenlight a crypto ETF in the US, and 12 Bitcoin spot ETFs<\/a> are currently waiting for approval.\u00a0<\/p>\n A US Spot Ethereum ETF would significantly boost interest and confidence in Ethereum and ultimately drive the asset to new highs<\/a>. The hype leading up to the approval may also push the asset to a new yearly high.<\/p>\n ETH is up by more than 60% this year<\/a> and has outperformed BTC in the past few days. It is currently trading at $2,060 and analysts believe a bullish cross over $2,150<\/a> would signal the end of the bear market for ETH.<\/p>\n <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-32465","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/32465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=32465"}],"version-history":[{"count":1,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/32465\/revisions"}],"predecessor-version":[{"id":32481,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/32465\/revisions\/32481"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=32465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=32465"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=32465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Potential Impact On Ethereum Price If The ETF Is Approved<\/h2>\n
BlackRock And NASDAQ Lobbies SEC To Allow Spot ETH ETFs<\/h2>\n
Potential Impact On Ethereum Price If The ETF Is Approved<\/h2>\n