Blackrock argues SEC ‘must' approve Ethereum Spot ETFs
Blackrock argues that SEC ‘must' approve Ethereum spot ETFs
Blackrock, the world's largest asset manager, has argued that the U.S. Securities and Exchange Commission (SEC) must approve Ethereum Spot Exchange Traded Funds (ETFs), as Blackrock intends to launch. The Nasdaq Stock Market has filed with the SEC the listing and trading of shares of Blackrock's spot Ethereum ETF, called “Ishares Ethereum Trust.” This happened after the asset manager registered the fund with the Delaware Division of Corporations.
ETF Ethereum spot and Blackrock
According to the SEC filing, Ishares Delaware Trust Sponsor LLC, a wholly owned indirect subsidiary of Blackrock Inc, will be the sponsor of Blackrock's Ethereum ETF spot. Additionally, the Coinbase Custody Trust Company will act as custodian for the trust's Ethereum holdings.
Nasdaq stressed that approval of a spot Ethereum ETF would represent “a significant gain for the protection of U.S. cryptoasset investors.”
Other arguments and perspectives
Nasdaq noted that the court's recent decision in Grayscale Investments v. SEC in favor of bitcoin futures ETPs highlights the importance of a seamless connection between the regulated market and the ETH spot market.
Nasdaq and Blackrock's argument also relies on the SEC's approval of nine ETH futures ETFs for trading. They therefore believe that the approval of ETPs offering exposure to spot Ethereum is inevitable. This is mainly due to the already existing approval of ETFs based on ETH Futures, which in turn are priced on the underlying ETH spot market.
Blackrock position and outlook
Blackrock has also filed an application with the SEC for a Spot Bitcoin ETF. CEO Larry Fink expressed that there was strong demand and pent-up interest in crypto. He views crypto as a hedge against inflation and currency devaluation. Fink also said that crypto would not grow beyond a single currency and that Blackrock was working to democratize crypto.
It remains to be seen whether the SEC will approve a spot Ethereum ETF any time soon. Let us know what you think in the comments.