BlackRock filing confirms Ethereum ETF plan with Coinbase as custodian

BlackRock filed its S-1 prospectus for its spot Ethereum exchange-traded fund this morning.

According to the filing, the financial giant will use Coinbase as custodian of the Ether underlying the trust.

ETF issuers must get their S-1 forms signed off by the SEC’s division of Corporate Finance, while their 19b-4 filings are handled by from the regulator’s Trading and Markets division.

BlackRock submitted a 19b-4 filing with Nasdaq on November 9.

Both forms present essential steps for the application, and eventual launch, of an ETF product.

BlackRock is already using Coinbase as its custodian for its iShares Bitcoin spot ETF. That application is still currently in review by the SEC.

An Ethereum spot ETF offer the chance for US investors to conveniently get exposure to Ether without needing to set up crypto-specific infrastructure such as wallets.

Analysts at Bloomberg say the SEC has a 90% chance of approving pending Bitcoin spot ETF applications before January 10.

Other financial firms have filed Ethereum spot ETF applications, including VanEck, ARK Invest, Hashdex, and Galaxy Digital. Grayscale is also looking to convert their Ethereum trust into an ETF.

BlackRock has already established a strategic partnership with Coinbase.

The firms announced in August 2022 that Coinbase Prime will be connected to BlackRock’s institutional investment platform, Aladdin, for the purpose of crypto trading and custody.

Tom Carreras is based in Costa Rica. Got a tip about ETFs? Reach out to tcarreras@dlnews.com