BlackRock buys $10 million of Ethereum to launch its ETF

As the cryptocurrency market continues to boom, major asset managers are taking a closer look and capitalizing on the situation. Asset management giant BlackRock stands out by launching an Ethereum ETF.

Imminent Launch of BlackRock’s Ethereum ETF?

After receiving regulatory approval for its Bitcoin ETF earlier this year, BlackRock is now preparing to launch its Ethereum ETF. The filing with the SEC reveals that the manager has already invested $10 million in the initial purchase of Ether.

This initial investment of 400,000 shares at $25 each sets the net asset value of the Ethereum ETF at $10 million. The fund will trade under the ticker ETHA, with :

• the Bank of New York Mellon as the trustee custodian,
• Coinbase holding the underlying Ether.

Bloomberg analyst Eric Balchunas estimates that the launch could take place as early as the end of June. He bases this on the update of the S-1 filing submitted by BlackRock.

The Phenomenal Success of BlackRock’s Bitcoin ETF

This upcoming launch of the Ethereum ETF follows the success of BlackRock’s Bitcoin ETF. After only a few months of trading, this exchange-traded fund has reached nearly $20 billion in assets under management. It has become the largest Bitcoin fund in the world.

Since its launch in January, BlackRock’s Bitcoin ETF has accumulated over $16 billion in net inflows. Major state pension funds have also invested in this product—a situation that highlights institutional interest in cryptocurrencies!

The success of BlackRock’s ETFs and the recent approval by the SEC of multiple Ethereum ETFs illustrate the gradual adoption of cryptocurrencies by traditional finance. This trend is expected to continue as institutional investors and regulators’ confidence strengthens.

More and more asset managers are looking to offer their clients exposure to digital assets such as Bitcoin and Ethereum ETFs. With its flagship products, BlackRock is positioning itself as a leader in this emerging asset class.