BlackRock (NYSE:BLK), the largest asset manager globally, has made a significant move in the cryptocurrency sector by filing an S-1 form with the Securities and Exchange Commission (SEC) to launch a spot Ether (CRYPTO: ETH) exchange-traded fund (ETF).
This announcement led to an immediate market reaction, with the price of Ether surging nearly 2% to $2,080.
What Happened: BlackRock's intention to venture into the Ether ETF was further reinforced by the recent registration of "iShares Ethereum Trust" in Delaware. The iShares division, known for ETFs, is part of BlackRock’s wider investment management portfolio.
This move aligns with BlackRock’s increasing focus on the cryptocurrency market.
Why It Matters: The crypto market, particularly Ether, has shown a quick and positive response to ETF-related news, especially in light of recent court rulings that have challenged the SEC's rejections of spot crypto ETF applications. This has bolstered market optimism for the potential approval of such ETFs.
Previously, a spoof ETF application referencing XRP led to a 10% rally in the token’s price before BlackRock dismissed the news.
BlackRock’s foray into the cryptocurrency ETF market isn't limited to Ether. The asset management giant is also in the process of listing a Bitcoin ETF, which could significantly expand access to cryptocurrency for average investors.
Larry Fink, the CEO of BlackRock, has shown a noticeable shift in stance towards the crypto sector, moving from skepticism to support.
This development is significant, as it marks a major institutional endorsement of cryptocurrencies, potentially leading to increased mainstream adoption and investment in the sector.
The involvement of a financial heavyweight like BlackRock in the cryptocurrency ETF space could bring more stability and credibility to the market, encouraging both individual and institutional investors to engage more confidently with digital assets.
Read Next: The Great Crypto Holdup: SEC Delays Decision On Landmark ETF Applications
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