BlackRock Submits Application for Spot Ethereum ETF

BlackRock Submits Application for Spot Ethereum ETF

BlackRock, the world’s largest asset manager, has officially filed an S-1 form with the SEC for a spot Ethereum ETF. This move follows the recent registration of the “iShares Ethereum Trust” in Delaware, hinting at BlackRock’s intentions to launch an ETF that tracks Ethereum. The application designates Coinbase as the custodian for the underlying ETH, but it remains unclear if the Trust will engage in ETH staking or distribute dividends from yields. 

This development comes after BlackRock’s earlier filing for a Bitcoin ETF and amidst rumors, which the company denied, of a similar initiative for a Ripple (XRP) ETF.

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SEC Postpones Decision on Bitcoin and Ethereum ETFs 

The SEC has extended its timeline for a decision on converting Bitcoin and Ethereum futures ETFs into spot ETFs to January 1, 2024. This delay impacts the applications submitted by Hashdex and Grayscale. Hashdex’s unique approach includes a blend of Bitcoin Futures Contracts, actual Bitcoin, and cash, aiming to minimize market manipulation risks. Meanwhile, Grayscale’s application for an Ethereum futures ETF is also awaiting a verdict. 

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” stated the SEC in their announcement.

The crypto community is closely monitoring these developments, as the approval of spot Bitcoin ETFs could significantly influence the market. 

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CFTC Chair: Crypto Regulation Unchanged Since FTX Collapse

At a recent conference, CFTC Chair Rostin Behnam highlighted that not much has changed in crypto regulation post-FTX crash. Speaking at Georgetown University’s Financial Markets Quality Conference 2023, Behnam noted that the CFTC is limited to intervening in spot crypto markets only in cases of fraud or manipulation. He highlighted that key cryptocurrencies like Bitcoin and Ethereum don’t fall under the SEC’s jurisdiction, which oversees securities. 

Current legislative initiatives to extend the CFTC’s reach in the crypto market are pending in Congress, with little progress. 

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Solana Rejects Claims of Security Issues in Saga Phones

Solana Labs has refuted a report by blockchain security firm CertiK, which alleged a critical security flaw in Solana’s Saga smartphone. CertiK’s report suggested the device was vulnerable to a bootloader unlock attack, potentially compromising sensitive data, including cryptocurrency private keys. 

However, Solana Labs clarified that these claims are inaccurate. According to Solana, unlocking the bootloader, a process feasible on many Android devices, requires the user’s passcode or fingerprint and results in a complete device wipe, including private keys. Solana stressed that users receive multiple warnings about these consequences. 

Released in April 2022, the Solana Saga phone, priced at $1,099, aims to integrate crypto applications into tech hardware through a Web3-native app store.

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Other breaking news

• Commerzbank Obtains German Crypto Custody License
• Nocturne Launches Private Accounts on Ethereum Mainnet
• PancakeSwap Unveils Crypto Gaming Hub with CAKE Rewards
• Bitcoin Ordinals Ecosystem Rises, Fueled by ORDI Buzz
• South Korea Pension Fund’s $20M Coinbase Investment Yields 40% Profit

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Wrapping up

And that wraps up today's edition of Datawallet Daily. Key takeaways include BlackRock's significant step towards an Ethereum ETF, the SEC's extended review period for Bitcoin and Ethereum ETFs by Hashdex and Grayscale until January 1st, and the CFTC's acknowledgment of limited regulatory changes in the crypto landscape post-FTX collapse. Additionally, Solana has confidently addressed and dismissed security concerns related to its Saga Phones Stay tuned for more updates!