Blackrock Officially Submits Ethereum ETF Proposal to US Securities Regulator – BlackRock, the largest asset manager globally, has officially submitted the S-1 form for its Ethereum Trust to the U.S. Securities and Exchange Commission (SEC), marking a significant move towards the introduction of an Ethereum exchange-traded fund (ETF) on Nasdaq. This follows BlackRock’s recent establishment of the trust in Delaware, with the disclosure of a 19b-4 filing just a week ago.
The submission to the SEC characterizes the ETF as an “emerging growth company.” The Ishares Ethereum Trust serves as an investment vehicle, enabling indirect investment in Ethereum. Operating as a repository, it securely holds Ethereum and issues representative shares to investors, representing a share of the trust’s holdings.
The fund is overseen by a consortium of companies, with Ishares Delaware Trust Sponsor LLC leading the organization, Coinbase Custody Trust Company, LLC safeguarding Ethereum (ETH), and other entities managing responsibilities like cash assets and administration. In line with the 19b-4 filing, the trust’s framework reveals that shares are traded in significant groups called “Baskets,” mainly accessible to institutional investors or specialized firms.
Retail investors can access shares through the stock market (Nasdaq), but their market price might deviate from the actual Ethereum value within the fund. The launch of the ETF ultimately depends on the SEC’s approval of the ETH ETF. Following last week’s registrations, BlackRock has elucidated its rationale for why the SEC “must” approve spot Ethereum exchange-traded funds (ETFs).
Essentially, BlackRock contends that without SEC approval for the ETF, retail investors are compelled to explore Ethereum exposure through inherently riskier channels. The firm believes this product would protect investors, providing a means to interact with crypto services that adhere to regulatory standards. The forthcoming decision by the SEC holds the key to unlocking this opportunity, and if approved, it could mark a pivotal moment in expanding accessible and secure avenues for engaging with the dynamic world of cryptocurrencies.