BlackRock, the world’s largest asset manager, has officially applied for a spot Ethereum (ETH) exchange-traded fund (ETF). The move comes four months after the firm filed for a spot Bitcoin ETF. The announcement led ETH prices to surpass $2,000 for the first time in over a year, marking a significant bullish trend for the cryptocurrency market. Additionally, several more altcoin projects experienced a rise with this development.
BlackRock announces ETF move
The application, known as the “iShares Ethereum Trust,” was approved after Nasdaq filed form 19b-4 with the Securities and Exchange Commission (SEC) on behalf of BlackRock. The filing signaled growing institutional interest beyond Bitcoin. Bitcoin advocate Udi Wertheimer acknowledged the development, saying, “There is a second best,” referring to MicroStrategy CEO Michael Saylor’s belief that Bitcoin is the ultimate asset.
While other crypto advocates celebrated the diversification of institutional interest, some noted that the Ethereum ETF filing suggested BlackRock’s spot Bitcoin ETF was imminent. Independent Ethereum trainer Sassal highlighted the ETF’s potential impact on ETH returns. He suggested that investors are ready to “absolutely drool over the real return that a staked spot ETH ETF can deliver.”
Ethereum price rose 10 percent: What levels next?
Ether price rose over 10 percent in response to BlackRock registering an Ethereum trust in Delaware and subsequently filing for a spot Ethereum ETF with Nasdaq. Markus Thielen, Head of Crypto Research and Strategy at Matrixport, called the event “a nuclear winter for anyone who doubts Ethereum,” noting a massive short squeeze and record-high funding rates. Trading firm QCP Capital attributed Ether’s outperformance over Bitcoin to BlackRock’s filing and expected a market reaction similar to when the asset manager filed for a spot Bitcoin ETF.
Cryptocurrencies recorded transaction volumes of over $100 billion, while Bitcoin, Ether and Tether witnessed volumes of $34 billion, $47 billion and $69 billion respectively. Leading altcoin Ethereum hit $2,134, while Bitcoin is down 4 percent from its high of around $38,000 before the BlackRock news. QCP Capital stressed the need for caution despite optimistic market indicators, warning of significant resistance levels and potential momentum stalling.
These altcoin projects were also affected
The announcement that BlackRock has filed for an Ethereum ETF also triggered a significant rally in popular Ethereum staking tokens. Lido Finance’s governance token surged over 20 percent overnight, reaching $2.49. On the other hand, RocketPool’s native token has increased by over 20% in the last 24 hours to $32.83. Lido Finance and RocketPool are among the industry’s largest liquid staking providers, allowing users to stake their Ethereum and receive staked tokens (sETH and RETH, respectively) in return. The rise in stake token prices is attributed to BlackRock’s move suggesting it is planning an ETF for Ethereum.
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