The world’s largest asset manager filed for a spot Ether (ETH) exchange-traded fund (ETF) on Nov. 9, four months after filing for a spot Bitcoin ETF. BlackRock’s filing helped ETH prices soar past $2,000 for the first time in over a year.
BlackRock’s intention to file for an Ether spot ETF had a bullish effect on the crypto market, helping ETH get past the critical resistance of $2,000 for the first time in six months.
Apart from ETH, other altcoins also saw significant gains before a flash crash, with nearly $1 billion in open interest being 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.” The move signals the asset manager’s intention to expand beyond Bitcoin with its ETF aspirations, invoking various reactions from the crypto community.
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Bitcoin proponent Udi Wertheimer reacted to the news, saying, “There is a second best,” referring to the popular meme of MicroStrategy CEO Michael Saylor, who believes that Bitcoin (BTC) is the only true asset and that there is no second best.
BREAKING: BLACKROCK: THERE IS A SECOND BEST pic.twitter.com/SEtoTADf0h
— Udi Wertheimer (@udiWertheimer) November 9, 2023
Other crypto proponents rejoiced in growing institutional interest beyond Bitcoin. Raoul Pal said an ETH ETF is the “holy grail for asset managers as they can capture the yield and only give price performance to the ETF holders.”
Others pointed out that BlackRock’s ETH ETF interest suggests that its spot Bitcoin ETF is a done deal.
ETH ETF filling seems to suggest BTC ETF is a done deal.
(Bottom of page 12 onward) pic.twitter.com/Jymn3ltzie
— Wise (@wise_eth) November 9, 2023
Sassal, an independent Ethereum educator, drew attention to the impact of the ETF on ETH yields, claiming traders are going to “absolutely salivate over the real yield that a staked spot ETH ETF can offer.”
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