BlackRock is Registering iShares Ethereum Trust in Delaware: If you’ve been following the trends of cryptocurrency in recent years, you might have heard about the suffering or upheavals happening in the crypto world. However, on June 24, 2021, BlackRock, a finance giant, has announced via an SEC filing, signing an agreement with the legal entity of Delaware to create a new iShares Ethereum Trust.
BlackRock is Registering iShares Ethereum Trust in Delaware
This new trust works much like a typical ETF, backed by digital assets of Ethereum, therefore offering a new investment avenue for retail and institutional investors.
Ecosystem of the Ethereum Blockchain
In the SEC filing, BlackRock Inc stated that it has picked Delaware’s legal entity to incorporate the iShares trust intending to allow investors to access the ecosystem of the Ethereum blockchain while keeping its operational costs low. This move reflects the company’s intention to delve into the digital cryptocurrency market, as its competitors, such as JP Morgan Chase and Goldman Sachs, have already begun the launch of their respective cryptocurrency funds.
Notably, the iShares Ethereum Trust still requires SEC’s approval before beginning trading, but the move alone in registering the legal entity in Delaware highlights BlackRock’s intention to at least introduce the investment product in the market.
Future Prospects of iShares Ethereum
One potential consequence of the launch of the iShares Ethereum Trust is increasing the trust level for mainstream institutional investors. Cryptocurrencies remain highly volatile and thus risky assets. If the iShares Ethereum Trust can prove to provide a buoyant investment avenue, other financial institutions may follow, allowing for a broader acceptance of cryptocurrencies. It also opens up the conversation concerning the future valuation of digital currencies. If iShares Ethereum Trust performs well, the increase in trust may raise the price of Ethereum and, thus, other digital currencies.
BlackRock has always maintained a cautious attitude towards cryptocurrencies, which makes the above announcement a bit surprising. This is not BlackRock’s first rodeo regarding cryptocurrencies. Its CEO, Laurence Fink, in early 2018 voiced his undervaluation of cryptocurrencies, calling Bitcoin fraudulent. However, in June 2018, the company set a team dedicated to studying blockchain and cryptocurrencies. It affirms their commitment to craft their products to meet the clients’ needs and serve as sustainable investment alternatives.
What is BlackRock?
When it comes to investment management, BlackRock is a name that is hard to miss. The New York-based company is the world’s largest asset manager with over $7 trillion in assets under management. Its reach spans across countries and industries, serving institutions, financial advisors, and individual investors. While it may seem like a simple investment management firm on the surface, BlackRock is much more complex than that. In this blog post, we will delve into the history, operations, and impact of this industry leader.
History of BlackRock
BlackRock was founded in 1988 by eight partners who served as executives at The First Boston Corporation. They started off with an initial investment of $5 million and a focus on fixed-income and mortgage-backed securities. Over the years, the company grew through a series of acquisitions, expanding its investment capabilities and footprint. In 2006, BlackRock went public with an initial public offering (IPO) that valued the firm at around $9 billion. Since then, it has continued to grow and innovate, cementing its position as the world’s largest asset manager.
BlackRock’s Operations: BlackRock is Registering iShares Ethereum Trust
BlackRock’s operations involve managing assets on behalf of clients, providing investment solutions, and offering technology and risk management services. Its investment management arm encompasses a wide range of strategies, including active, passive, and factor-based investing. The company also has a significant presence in alternative investments such as private equity, real estate, and infrastructure. In addition to investment management, BlackRock offers Aladdin, a platform that helps clients manage risk and streamline operations, and for risk management and advisory services, it has the BlackRock Solutions arm that provides investment, risk management, and financial services analytics.
BlackRock’s announcement to register a legal entity with Delaware to launch the iShares Ethereum Trust is a positive move toward the integration of cryptocurrencies into a mainstream investment product. Although the iShares Ethereum Trust still requires SEC approval, it has opened up the discussion on cryptocurrencies’ credibility and scalability and increased trust among institutional investors.