Bloomberg—BlackRock, a leading asset management firm, has recently taken steps to establish an Ethereum trust. This move is a precursor to seeking regulatory approval for an exchange-traded fund (ETF) linked to Ether, the world’s second most valuable digital token.
Last Thursday, BlackRock registered the iShares Ethereum Trust as a statutory trust in Delaware. On the same day, Nasdaq submitted a proposal to list and trade shares of this trust.
Market Response
In response to these developments, Ethereum’s price experienced a significant increase, rising by 9.18% to approximately $2,062.8, a peak not seen since April. Bitcoin, the most valuable cryptocurrency, also saw a modest increase of 2.56%, reaching $36,553, close to its highest level in 18 months.
Economic Implications
BlackRock’s move to create an Ethereum trust and potentially an ETF could be seen as a positive economic development. It signifies a growing acceptance and integration of digital currencies into mainstream financial systems, which could potentially lead to increased liquidity and stability in the cryptocurrency market. However, it’s important to note that cryptocurrencies’ volatility and regulatory uncertainty still pose risks.
