In a significant development, financial behemoth BlackRock has taken a strategic step by registering the iShares Ethereum Trust, marking a potential foray into seeking regulatory approval for an exchange-traded fund (ETF) linked to Ethereum, the second-largest digital asset.

The registration of the iShares Ethereum Trust as a Delaware statutory trust was completed by BlackRock on Thursday. Simultaneously, Nasdaq submitted a proposal to list and trade shares of the trust, signaling a noteworthy move in the evolving landscape of cryptocurrency investments.

As this news broke, the price of Ethereum experienced a notable surge, rising by 9.18% to approximately $2,062.8. This surge positioned Ethereum at its highest level since April, underlining the market’s positive response to BlackRock’s Ethereum-related initiative. In comparison, Bitcoin, the largest cryptocurrency, also saw a 2.56% increase, reaching $36,553 and maintaining its position around an 18-month high.

This development follows BlackRock’s earlier move to register a Bitcoin trust in a similar fashion. Subsequently, within a week, the company filed an application with the U.S. Securities and Exchange Commission (SEC) to launch a spot Bitcoin ETF. However, BlackRock has chosen to remain tight-lipped about its intentions behind the creation of the Ethereum trust and any potential plans for filing an ETF.

The cryptocurrency market has witnessed heightened interest in ETFs, particularly those linked to Bitcoin. Around a dozen ETF providers have filed applications to create spot Bitcoin ETFs or convert existing products into spot ETFs. This trend has played a role in the recent surge in cryptocurrency prices.

Despite the growing interest, the SEC, led by Chair Gary Gensler, has yet to approve any spot Bitcoin ETFs, emphasizing concerns about the susceptibility of the spot Bitcoin market to fraud and manipulation. This cautious approach by regulators has not deterred ETF providers, including BlackRock, from exploring opportunities in the cryptocurrency space.

Several other ETF providers have sought SEC approval for spot Ether ETFs, indicating a broader industry trend. Notable names in this regard include Ark Investment Management, Invesco, and VanEck. The convergence of interest in both Bitcoin and Ethereum ETFs suggests a maturing market with increasing institutional involvement.

In conclusion, BlackRock’s registration of the iShares Ethereum Trust signals a noteworthy move in the cryptocurrency space, raising speculation about the potential introduction of an Ethereum-linked ETF. As the industry awaits regulatory developments, the cryptocurrency market continues to evolve, driven by the growing interest of major financial institutions in digital assets.