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NEW YORK – BlackRock (NYSE:), the world’s largest asset manager, has taken significant steps to expand its cryptocurrency offerings. The company filed for a spot exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC) and registered its iShares’ Ethereum Trust in Delaware on Tuesday. This move demonstrates BlackRock’s growing interest in providing its clients with diversified investment vehicles in cryptocurrencies.
In preparation for the potential approval of its Bitcoin ETF, BlackRock has secured commitments from major market makers, Jane Street and Jump Trading, to provide liquidity. This partnership, announced Wednesday, is a strategic effort to ensure smooth trading and price stability for the proposed fund.
Despite the market’s anticipation of regulatory approval of these ETFs, Ethereum has seen some volatility in its price today. Early in the day, the digital currency traded above $2,100, reaching a local peak of $2,134 before dropping back to around $1,900. Larry Fink, CEO of BlackRock, commented on the recent rise in the stock price as a sign of pent-up interest in cryptocurrencies.
Details regarding how BlackRock will manage Ether staking and dividends were not disclosed in the filing. As the industry awaits further developments, the asset manager’s latest actions underscore its commitment to integrating digital assets into traditional investment frameworks. With Coinbase (NASDAQ:) Custody Trust Company as its custodian and CF Benchmarks as its benchmark provider for Ethereum and Bitcoin ETFs, BlackRock is positioned at the forefront of bridging the gap between cryptocurrencies and conventional finance.
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