BlackRock, the world's largest asset manager, has made a significant move in the cryptocurrency market by filing for a spot Ether (ETH) exchange-traded fund (ETF) on November 9th. This comes four months after the firm applied for a spot Bitcoin ETF.
The announcement catalyzed a surge in ETH prices, pushing them past the $2,000 mark for the first time in over six months, signaling a bullish trend in the crypto market.
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This bullish sentiment was not limited to ETH alone; other altcoins also experienced substantial gains, though these were followed by a swift market downturn, resulting in nearly $1 billion in open interest being erased from the market in a short span. However, on November 20th, Bitcoin managed to surpass the $37,000 mark.
The confirmation of BlackRock's ETF filing became public knowledge when Nasdaq submitted the 19b-4 form to the SEC on behalf of BlackRock, proposing the "iShares Ethereum Trust" ETF.
This move marks a strategic expansion of BlackRock's focus beyond Bitcoin and has elicited diverse reactions from the cryptocurrency community.
Notable Bitcoin advocate Udi Wertheimer responded to the news by referencing a popular meme associated with MicroStrategy CEO Michael Saylor, known for his stance that Bitcoin is an unparalleled asset, implying that Ether could be considered a close second.
The growing institutional interest in cryptocurrencies beyond Bitcoin is seen as a positive development by many in the sector. Raoul Pal, a prominent figure in the crypto world, hailed the ETH ETF as a pivotal achievement for asset managers, offering them the opportunity to capture yields while providing only price performance to ETF holders.
The enthusiasm for BlackRock's ETH ETF has led some to speculate that the approval of its Bitcoin ETF is imminent. Sassal, an independent Ethereum educator, highlighted the potential impact of the ETF on ETH yields, suggesting that the real yield offered by a staked spot ETH ETF could be attractive to traders.
BlackRock's filing for an Ether ETF significantly boosted Ether prices and signaled growing institutional interest in cryptocurrencies, sparking widespread speculation and anticipation in the crypto community.
