- BlackRock iShares has registered the Ethereum Trust in Delaware, hinting that a spot Ether ETF could be next.
- The asset manager followed the same route when filing for a spot BTC ETF, registering the iShares Bitcoin Trust a week earlier.
- Ethereum price is up almost 10% on the news, breaking past the $2,000 psychological level.
Ethereum (ETH) price has shot up, breaking past key barricades as ETH shows strength. This time, the breakout has nothing to do with Bitcoin (BTC), with the largest altcoin by market capitalization following its own mania amid recent developments in the institutional crypto space.
Also Read: Ethereum net exchange deposits hits five-month peak with almost 130,000 ETH flowing to exchanges
Ethereum price shatters $2,000 on BlackRock iShares news
Ethereum (ETH) price has breached the $2,000 barricade and then some, stretching high to revisit levels last tested in April. It comes after reports that BlackRock, which boasts almost $10 trillion in assets under management, has registered the iShares Ethereum Trust in Delaware.
The news has provided tailwinds for Ethereum price on speculation that a spot Ether exchange-traded fund (ETF) filing could come soon. This is because the asset manager followed the same route on June 8, filing an iShares Bitcoin Trust in Delaware, making Blackrock Fund Advisors the trustee of the Trust and Coinbase Custody Trust Company the custodian for the Trust’s BTC holdings.
Shortly after, on June 15 to be exact, BlackRock followed with a spot Bitcoin ETF filing to the US Securities & Exchange Commission (SEC).
BlackRock has made first step towards filing for a spot Ether ETF. I just confirmed on the website myself. Nice catch by @SummersThings https://t.co/mLKIhKdiI6
— Eric Balchunas (@EricBalchunas) November 9, 2023
If history repeats itself, BlackRock could file a spot ETH ETF by Thursday, November 16, adding to its list of applications to the financial regulator as its spot BTC ETF is also pending approval.
BlackRock hints at joining the spot ETH ETF queue
While BlackRock is only showing intention now, other institutional players beat the asset manager to it. Among them, is Valkyrie Investment, which converted its BTC futures ETF into a combined fund that offers BTC and ETH futures. The move saw the firm change its name to Valkyrie Bitcoin and Ether Strategy ETF. Valkyrie's Chief Investment Officer, Steven McClurg, said in a statement to FOX Business:
We are thrilled to be the first to offer ether futures to our investors as interest in the asset has grown exponentially over the past year.
Besides Valkyries, several other firms have demonstrated interest in offering a spot ETH ETF, including VanEck, Grayscale Investments, and Bitwise.
Crypto ETF FAQs
What is an ETF?
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Is Bitcoin futures ETF approved?
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Is Bitcoin spot ETF approved?
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
Ethereum price outlook
Ethereum price peaked around 8%, breaking past the supply zone extending from $1,861 to $2,029. Notably, investors should wait for a confirmed close above the midline of the order block at $1,935.
The Relative Strength Index (RSI) also calls for caution despite momentum still rising. Its position at 81 shows that ETH is massively overbought, and a correction could be around the corner. With this outlook, traders with open positions should not close them just yet but should be wary of opening new positions.
The Awesome Oscillator (AO) is also in positive territory with green histogram bars as bulls take charge of the ETH market. Increased buying pressure above current levels could set the tone for Ethereum price to stretch to the $2,141 range high. Such a move would constitute a 5% climb above current levels.
ETH/USDT 1-day chart
On the flipside, if Ethereum price fails to close above $1,935, the move north could be delayed. The ensuing selling pressure from the supply zone could send ETH south, potentially tagging the $1,748 support level or dipping into the bullish breaker for a possible turnaround.
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