- Ethereum (ETH) prices surged, gaining 10% in the past 24 hours.
- BlackRock filed an application with the SEC for a spot ETH exchange-traded fund (ETF).
- BlackRock registered “iShares Ethereum Trust” in Delaware, a precursor to an ETF application.
Ethereum (ETH) prices surged on Thursday after asset management firm BlackRock filed an application with the Securities and Exchange Commission (SEC) for a spot ETH exchange-traded fund (ETF).
ETH rose above $2,000, gaining 10% over the past 24 hours. The rally came after BlackRock registered an entity called “iShares Ethereum Trust” in Delaware on Wednesday, typically a precursor to an ETF application.
Hours later, BlackRock confirmed its ETH ETF plans by filing Form N-1A with the SEC. The ETF would track the price of ether directly rather than through futures contracts.
BlackRock news sent Ethereum flying
The news sent ether prices flying while temporarily boosting bitcoin (BTC) to an 18-month high near $38,000. However, bitcoin later erased those gains and was only up 3% on the day.
Meanwhile, most alternative cryptocurrencies (altcoins) declined despite the bullish ETH news. Coins like XRP, Dogecoin, Uniswap, and Stellar’s Lumens pulled back 6-7%. Toncoin dropped 10% after surging 20% over the past week.
The divergence highlights a rotation of capital from altcoins into the top two crypto assets as investors reacted to BlackRock’s ETH ETF plans.
Only tokens related to ETH, like Lido DAO and Rocket Pool, bucked the overall altcoin decline. Their prices rose 18% and 23%, respectively, as staking is expected to benefit from an ETH spot ETF.
Approval for a spot-ether ETF could further legitimize the cryptocurrency as a unique asset beyond its attachment to Bitcoin. Ethereum has outperformed bitcoin in 2022 as investors bet on its utility in powering decentralized finance and other blockchain applications.