The price of Ethereum surged above the eagerly awaited psychological threshold of $2,000 in the last few minutes. The world’s largest asset manager, BlackRock, recently announced that it planned to introduce a spot Ethereum exchange-traded fund (ETF), which prompted this notable increase in value.
BlackRock Ignores Bitcoin ETF and Follows Ethereum
With Ethereum’s price finally breaking through the $2,000 resistance level, the market and the Ethereum community have been eagerly awaiting a breakthrough, and it has materialized. Following BlackRock’s increased involvement in the cryptocurrency space, this rally has occurred. Soon after submitting an application for a Bitcoin ETF, the massive asset management company has expanded the range of products it offers to include a spot Ethereum ETF. BlackRock’s entry into the cryptocurrency product space represents a significant milestone for Ethereum.
With over $9 trillion in assets under management, BlackRock, the industry titan of asset management, has taken a bold step forward by registering an Ethereum trust in Delaware. This development follows the financial giant’s registration of the iShares Bitcoin Trust, a similar initiative for Bitcoin. The fact that this registration happened precisely one week prior to BlackRock submitting an ETF application for Bitcoin to the Securities and Exchange Commission (SEC) raises the possibility that there is a pattern that will predict Ethereum’s ETF proposal in the future.
BlackRock’s Ethereum trust registration is a noteworthy indication of institutional interest in the asset because it makes it easier for investors to access Ethereum without having to deal with the hassles of direct trading. The action is interpreted as a recognition of Ethereum’s increasing power and the potential to be incorporated into conventional investment plans.
The price of ETH on the Binance exchange peaked at $2,050 after the announcement.
An Upsurge In ETF Approvals
Despite the fact that no bitcoin ETFs that invest in bitcoin directly have received approval from the US Securities and Exchange Commission (SEC), the market is very enthusiastic about the prospect. The announcement that BlackRock and other companies might receive approval soon caused the price of bitcoin to soar to its highest level in over 1.5 years. The same excitement is anticipated given that BlackRock, the largest asset manager in the world, has expressed interest in an Ethereum product.
The United States’ SEC has the authority to approve twelve proposed over the next week, with decisions potentially being made as late as November 17. spot Bitcoin ETFs. Analysts James Seyffart and Eric Balchunas of Bloomberg noted that the SEC has until November 9 to approve these applications, which include Grayscale’s proposal to convert its GBTC trust into an exchange-traded fund (ETF).
A previous significant move in the ETF market was made by ARK Invest and 21Shares when they filed for a spot Ethereum (ETH) ETF.