Introduction
Today, a tweet from @summersthings disclosed a significant development: BlackRock, the world’s largest asset manager, has registered an iShares Ethereum Trust in Delaware. This move is particularly noteworthy as it mirrors their previous strategy with Bitcoin, where they registered a similar trust before filing for a Bitcoin spot ETF application. This development could have substantial implications for the cryptocurrency market.
A senior ETF analyst for Bloomberg has retweeted this tweet saying:
‘BlackRock has made first step towards filing for a spot ether ETF. I just confirmed on the website myself.”
Wider ramifications:
This development carries broader implications for the entire cryptocurrency space, which has recently faced intense scrutiny from regulatory agencies like the SEC. The SEC has categorized many cryptocurrencies and altcoins as securities. However, Ethereum has not been registered as a security, suggesting that BlackRock may not view it as violating securities laws. Consequently, this could pave the way for BlackRock to facilitate a product centred around Ethereum. Additionally, this move might indicate a more favourable outlook for many altcoins, although there has been no official confirmation on this matter
Ethereum and the SEC:
Ethereum’s interaction with the SEC (Securities and Exchange Commission) has been a topic of significant interest in the crypto community. Unlike many other cryptocurrencies, Ethereum has largely been viewed differently by the SEC, primarily due to its decentralized structure and functionality. In 2018, the SEC’s Director of Corporation Finance, William Hinman, stated that Ethereum did not exhibit the properties of a security, largely because of its decentralized network. This distinction is crucial as it exempts Ethereum from the stringent regulations that govern securities. However, the SEC’s stance is not static and continues to evolve as the landscape of cryptocurrency changes. The agency’s approach to Ethereum and other similar cryptocurrencies could set a precedent for how digital assets are regulated in the future. BlackRock’s recent move to register an iShares Ethereum Trust could be seen as a nod to Ethereum’s unique status in the eyes of regulatory bodies like the SEC.
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