- BlackRock has filed an Ethereum ETF application with the United States Securities and Exchange Commission.
- The iShares Ethereum Trust will aim to mirror the performance of the price of Ethereum.
- BlackRock’s filing has sparked a bullish rally in the price of ETH.
The trillion-dollar U.S.-based asset manager BlackRock has officially submitted an Ethereum exchange-traded fund (ETF) application with the United States Securities and Exchange Commission (SEC).
In particular, BlackRock submitted a Form S-1 Registration Statement with the SEC on Wednesday, November 15, for an iShares Ethereum Trust. This development followed BlackRock’s filing for the corporation name “iShares Ethereum Trust” in Delaware a week ago.
According to the new statement submitted to the SEC, the Trust’s objective is to mirror the price performance of Ethereum, reflecting such performance before covering the Trust’s expenses and liabilities.
BlackRock has identified Coinbase Custody Trust Company as the custodian for Ethereum holdings. Moreover, the statement hinted at another custodian for cash holdings and the Trust’s administration.
Notably, the Trust plans to continuously issue shares, with issuances and redemptions occurring in blocks known as “Baskets.” It was noted that transactions will take place in exchange for ETH. Moreover, the statement mentioned that the shares will be publicly offered at various prices reflecting the value of Ethereum.
BlackRock mentioned that no public market existed for the shares before this offering. Therefore, the shares will be listed and traded on NASDAQ under a yet-to-be-disclosed ticker symbol.
Furthermore, the Form S-1 registration statement noted that the Trust is not registered under the U.S. Investment Company Act, and its sponsor is not an SEC-registered investment adviser. It also mentioned that the Trust is not considered a commodity pool under the U.S. Commodity Exchange Act, and the U.S. Commodity Futures Trading Commission (CFTC) does not regulate the sponsor as a commodity pool operator.
BlackRock’s official filing for an Ethereum ETF has spiked the price of ETH, recording notable gains within the last few hours. Notably, last week’s filing saw Ethereum break above $2,100.
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