ETH price surge is not only attributed to BlackRock’s move but is also complemented by a resurgence in Ethereum network activity.
Ethereum (ETH), has seen a significant price increase, surpassing the $2,000 mark following reports that the world’s largest asset manager, BlackRock Inc (NYSE: BLK), has taken preliminary steps toward the creation of an Ethereum Exchange-Traded fund (ETF).
BlackRock’s Move into Ethereum ETF
According to a filing on Thursday, BlackRock Advisors filed for the registration of an iShares Ethereum Trust in the state of Delaware. The entity responsible for the filing, BlackRock Advisors, submitted the necessary paperwork, with Daniel Schweiger listed as the registered agent.
A managing director at BlackRock with the same name is identified on LinkedIn, adding credibility to the filing. However, when approached for comment, a representative for BlackRock opted not to provide any information on the matter.
This move by BlackRock mirrors its previous actions in the crypto space. The asset management giant registered a Bitcoin (BTC) trust in June, preceding its filing with the United States Securities and Exchange Commission (SEC) for a Bitcoin spot ETF. The new registration of an Ethereum trust in Delaware is seen by many as a potential precursor to a spot Ethereum ETF.
Ethereum’s price has responded positively to the news, rising by 6.98% and exceeding the $2,000 threshold. This surge comes at a crucial time, countering the recent sluggish performance of the digital asset.
The registered entity, iShares Ethereum Trust, bears the hallmark of BlackRock’s widely recognized brand name. While this marks a significant development for Ethereum, it is important to note that previous applications for spot Ethereum ETFs have faced delays and are still pending approval by the SEC.
Among these is the postponement of decisions on applications from ARK 21Shares and VanEck, which were originally scheduled for September 27. These decisions are now expected to be made on December 25 or 26.
Following that, Invesco and Galaxy Digital applied for spot Ethereum ETFs. Grayscale also applied in October to convert its Grayscale Ethereum Trust into a spot ETF, indicating a growing interest in providing regulated access to Ethereum for investors.
BlackRock’s Influence and Ethereum’s Bright Outlook
As Blackrock is the world’s largest asset manager with approximately $9 trillion in assets under management, its involvement in the crypto space carries significant weight. The company’s spot Bitcoin ETF is currently under consideration by the SEC, adding to the anticipation surrounding its potential Ethereum ETF.
ETH price surge is not only attributed to BlackRock’s move but is also complemented by a resurgence in Ethereum network activity. Markus Thielen, the Research Head of Matrixport, highlights the positive signs for Ethereum, noting that the weekly revenue recorded on the Ethereum network indicates promising times ahead.
Thielen’s recent analysis suggests a bullish outlook for Ethereum, with a potential price target of $3,000. He emphasizes this is possible as long as Ethereum’s transaction fees (gas fees) remain above $30 million. In the past two weeks, Ethereum’s weekly revenue surpassed this threshold, signaling a tradeable bottom for ETH.