BlackRock, the world’s largest asset manager, has filed for a spot Ether (ETH) exchange-traded fund (ETF) on November 9, just four months after filing for a spot Bitcoin ETF. The news of BlackRock’s filing caused ETH prices to soar past $2,000 for the first time in over a year. The intention to file for an Ether spot ETF has had a bullish effect on the crypto market, causing ETH to surpass the critical resistance of $2,000 for the first time in six months.
Other altcoins also saw significant gains in response to BlackRock’s ETF filing, but the gains were short-lived as nearly $1 billion in open interest was wiped out of the market within an hour. Millions in long and short positions were liquidated due to the sudden price fluctuations.
BlackRock’s ETH ETF filing was confirmed after its 19b-4 filing with Nasdaq became public. Nasdaq filed the 19b-4 form on behalf of the world’s asset manager with the SEC for a proposed ETF called the “iShares Ethereum Trust.” This move signals the asset manager’s intention to expand beyond Bitcoin with its ETF aspirations, which has invoked various reactions from the crypto community.
Bitcoin proponent Udi Wertheimer reacted to the news, saying, “There is a second best,” referring to the meme of MicroStrategy CEO Michael Saylor, who believes that Bitcoin (BTC) is the only true asset and that there is no second best. Other crypto proponents rejoiced in growing institutional interest beyond Bitcoin, with Raoul Pal stating that an ETH ETF is the “holy grail for asset managers.”
BlackRock’s interest in an ETH ETF has also led some to believe that its spot Bitcoin ETF is a done deal. Additionally, independent Ethereum educator Sassal drew attention to the impact of the ETF on ETH yields, claiming that traders are going to “absolutely salivate over the real yield that a staked spot ETH ETF can offer.”
Overall, BlackRock’s filing for a spot Ether ETF has had a significant impact on the cryptocurrency market, sparking renewed interest from investors and enthusiasts alike. The move also signals a growing acceptance and recognition of Ethereum and other altcoins by institutional investors, paving the way for further adoption and integration of cryptocurrencies into traditional finance. As the crypto market continues to evolve, the launch of an ETF for alternative cryptocurrencies like Ethereum could open up new investment opportunities and further solidify the legitimacy of digital assets in the eyes of traditional investors and financial institutions.
Source link
