According to the 19b-4 filing submitted on Thursday afternoon, the world's largest asset management company, BlackRock, has confirmed the development of a spot Ethereum ETF. Shortly after BlackRock submitted the registration entity application in Delaware, Nasdaq applied for the proposed ETF named "iShares Ethereum Trust." In recent months, the asset management company has shown increasing interest in cryptocurrencies and is currently awaiting a decision from the U.S. Securities and Exchange Commission (SEC) regarding its spot Bitcoin ETF application.
The filing indicates that the proposed Ethereum ETF will use Coinbase Custody Trust as the custodian and will utilize the CME CF Ether-Dollar Reference Rate - New York Variation.
Nasdaq stated in the filing, "The investment objective of the trust is to reflect the overall performance of the Ethereum price." According to CoinGecko data, following the news of the Delaware entity, the Ethereum price surged, rising 9.9% to $2,066 at 4:43 pm Eastern Time.
Other asset management companies such as Grayscale, Ark Invest, ProShares, and Valkyrie have also submitted spot Ethereum ETF applications. Any approvals may take several months, and the SEC has repeatedly delayed existing applications for proposed spot Bitcoin funds.
Nasdaq's filing referenced Grayscale Investments' recent victory, where three judges ruled that the SEC must reexamine the company's bid for a spot Bitcoin ETF, addressing the regulatory body's differential treatment of spot and futures ETFs. This has sparked optimism in the industry for spot Bitcoin products. Nasdaq stated in Thursday's filing that, given the SEC's approval of Ethereum futures ETFs, this should pave the way for spot Ethereum products.
"As the Commission has already approved ETFs that provide exposure to ETH futures positions, and as the futures themselves are priced based on the underlying spot ETH market, the Sponsor believes the Commission must also approve ETPs providing exposure to spot ETH positions, just like the Trust," the filing stated.
Currently, mainstream investor views on Ethereum lag behind Bitcoin. Bitcoin is widely regarded as "digital gold," while Ethereum is seen more as a risk asset or a technological investment. Therefore, Bitcoin and Ethereum ETFs may attract different types of investors.
Ethereum is often seen as an investment in technological innovation rather than just a digital commodity. If an Ethereum ETF is approved, it could have a significant impact on Ethereum price. Due to Ethereum's lower market capitalization and less legitimacy in the traditional financial world compared to Bitcoin, an ETF may have an amplifying effect on its price.
One unique aspect of Ethereum is its staking functionality, often compared to internet bonds. If a future Ethereum ETF includes staking, it could provide additional returns for investors, increasing its attractiveness. While both Bitcoin and Ethereum are tokens that fuel their networks and have relative scarcity, their roles and influences in the eyes of investors are different. Bitcoin's scarcity is predictable, while Ethereum is seen more as a technical platform.
However, if an Ethereum ETF is approved, it will be a recognition of Ethereum's maturity, indicating regulatory satisfaction with issues related to cryptocurrency regulation, custody, and transfer. Additionally, this will drive the prosperity of the Ethereum market, with a spot Ethereum ETF becoming a regulated mainstream investment tool, allowing investors to participate in Ethereum investments without personally holding cryptocurrencies.
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