Ethereum Breaks Above $2,000 As BlackRock Announces Spot Ethereum ETF Initiative
In the last few minutes, the price of Ethereum broke above the much-anticipated psychological mark of $2,000. This significant increase in value is a reaction to the recent announcement by BlackRock, the world’s largest asset manager, of its intention to launch a spot Ethereum exchange-traded fund (ETF).
BlackRock Follows Ethereum After Spot Bitcoin ETF
The Ethereum community and the market have eagerly anticipated a breakthrough, and it has arrived with Ethereum’s price finally vaulting over the $2,000 resistance level. This rally comes in the wake of BlackRock’s increased involvement in the crypto space. The asset management giant has now extended its product offerings to include a spot Ethereum ETF, shortly after filing for a Bitcoin ETF. This expansion into crypto products by BlackRock marks a significant milestone for Ethereum.
BlackRock, the behemoth in asset management with assets over $9 trillion under management, has made a decisive move as it registered an Ethereum trust in Delaware. This development comes following a similar initiative for Bitcoin, where the financial giant registered the iShares Bitcoin Trust. Notably, this registration took place just a week before BlackRock submitted an ETF application for Bitcoin to the U.S. Securities and Exchange Commission (SEC), suggesting a pattern that could foresee the future of Ethereum’s ETF proposal.
The Ethereum trust registration by BlackRock is a significant indicator of institutional interest in the asset, as it simplifies the process for investors to gain exposure to Ethereum without the complexities of direct trading. The move is seen as an acknowledgment of Ethereum’s growing dominance and potential for inclusion in mainstream investment strategies.
Following the announcement, the price of ETH reached a peak of $2,050 on the Binance exchange.
Wave Of ETF Approvals Incoming
Even though the US Securities and Exchange Commission (SEC) hasn’t given the green light to any bitcoin ETFs that directly invest in bitcoin, people in the market are really excited about the possibility. The price of bitcoin soared to its highest point in a year and a half when there was news that BlackRock and other companies might get approval soon. As BlackRock, the biggest asset manager globally, now shows interest in an Ethereum product, the same excitement is expected.
The SEC in the United States has the opportunity to give the go-ahead to twelve proposed spot Bitcoin ETFs over the coming week, with decisions possible up until November 17. Bloomberg analysts James Seyffart and Eric Balchunas pointed out that this period starting from November 9 is a chance for the SEC to approve these applications, which also covers Grayscale’s plan to turn its GBTC trust into an ETF.
ARK Invest and 21Shares previously took a notable step in the ETF market by filing for a spot Ethereum (ETH) ETF.