BlackRock’s Ethereum ETF Filing Boosts Ether Prices, Challenges SEC
BlackRock Files for Ether ETF, Driving Ether Price Surge
In a groundbreaking move, BlackRock has applied for a spot Ether (ETH) ETF, named “iShares Trust,” causing Ether’s price to surpass the $2,000 mark. This development, announced on November 9, has injected optimism into the crypto markets and sparked discussions about the U.S. Securities and Exchange Commission’s (SEC) approach to cryptocurrency-based exchange-traded funds (ETFs).
SEC’s Regulatory Stance on Crypto ETFs Challenged
The SEC has historically approved numerous crypto futures ETFs while consistently rejecting spot-crypto ETF applications. BlackRock’s recent filing challenges this position, arguing that the protections under the 1940 Act apply to ETFs and their sponsors, not the underlying assets like spot ETH or ETH futures derived from them.
Legal Experts and Analysts Monitor BlackRock’s Challenge
Legal experts and analysts are closely following BlackRock’s push against the SEC’s stance. Jake Chervinsky referenced Grayscale’s DC Circuit victory as a precedent for ETH-based ETP proposals, highlighting the importance of the spot ETH market. Scott Johnsson emphasized the need to understand the differences between the ’40 Act and ’33 Act and the significant markets test analysis included in BlackRock’s 19b-4 filing.
Anticipation of Regulatory Approval and Market Sentiment
Market sentiment is buoyant with a 40% increase in Bitcoin value today, and industry leaders mark January as a key month for potential SEC decisions due to ongoing investigations.
Potential Impact of BlackRock’s Endeavor
If BlackRock succeeds, it would signify a significant shift in the perception and regulation of spot-crypto ETFs, potentially leading to broader adoption within traditional finance. This could offer traders real yields on staked spot ETH ETFs, as highlighted by independent Ethereum educator Sassal.
Reactions within the Crypto Community
The diverse reactions within the crypto community reflect the complexity and evolving nature of cryptocurrency regulation. While some remain cautious, others view these developments as milestones for asset managers. As investors and regulators navigate this new terrain, all eyes will be on the SEC’s response to BlackRock’s challenge and its implications for future cryptocurrency investment products.
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