BlackRock Takes The Fight To SEC With New Filing
BlackRock and Nasdaq have explained why the SEC must approve the investment company’s new IPO fund filing (ETF). According to the SEC filing, approval of a Spot Etp ETP would represent a major victory for the protection of U.S. investors in the crypto asset space.
If approved, the Ishares Ethereum Trust would allow regular investors to trade ether, the world’s second-largest cryptocurrency by market capitalization, as easily as stocks can be traded.
BlackRock and Nasdaq Hall
BlackRock, the world’s largest asset manager, Recently applied to the SEC To launch an Ethereum traded fund (ETF) linked to the Ethereum spot price. BlackRock was not the first investment company to make this type of application, while hedge fund Ark is investing already filed for a Spot Etf Etf in September. However, news of the Blackrock deposit ushered Ethereum up over 11% in less than 24 hours. As a result, ETH burst on the fort $2,000 resistance level for the First time in seven months.
BlackRock’s Spot ETF is called “Ishares Ethereum Trust” and is sponsored by Ishares Delaware Trust Sponsor LLC, a subsidiary of BlackRock Inc. Coinbase, the largest crypto exchange in the United States, acts as custodian of the Trust’s file holders, which are to be traded on the NASDAQ stock exchange.
In its SEC filing, NASDAQ requested a rule amendment change to list and trade shares of the ETF. According to the filing, U.S. investors, for the most part, have not lacked a U.S.-regulated way to gain exposure to Ethereum investments. He also argues that most current methods are risky and subject to high trading fees and volatile discounts.
For example, an investor who purchased the largest ETH OTC fund in January 2021 and held the position at the end of 2022 would have suffered a 30% loss due to the variation in premium/discount, even if the ETH price has not changed. However, an ETH SPOT like the proposed Ishares Ethereum Trust ETF would better protect investors against the risk of losses through fraud and high premiums.
“At this point, approval of a Spot Eth ETP would represent a major victory for the protection of U.S. investors in the crypto-asset space,” the filing said.
Potential impact on Ethereum price if ETF is approved
Despite crypto ETFs. 12 Spot Bitcoin ETFs currently awaiting approval.
A US Ethereum ETF would significantly boost interest and confidence in Ethereum and ultimately drive the asset to new heights. The hype leading up to the approval may also push the asset to a new yearly high.
ETH has passed more than 60% this year and has outperformed BTC in recent days. It is currently trading at $2,060 and analysts believe a Bullish crosses above $2,150 would signal the end of the bear market for ETH.
ETH price remains above $2,000 | Source: ETHUSD on Tradingview.com
Featured image from Datawallet, chart from TradingView.com
