The BlackRock Ethereum ETF has propelled the price beyond $2,000, leading many in the community to view the Bitcoin ETF as a sure thing.
BlackRock has previously submitted an application for a Bitcoin ETF, and the SEC's approval period for this is active until November 17.
The world's largest asset manager, BlackRock, applied for an Ether (ETH) spot exchange-traded fund (ETF) on November 9, following its filing for a Bitcoin ETF four months earlier. This move by BlackRock played a role in pushing ETH prices above $2,000 for the first time in over a year.
BlackRock's decision to pursue an Ether spot ETF had a positive impact on the crypto market, facilitating ETH's breakthrough past the significant $2,000 resistance level for the first time in six months.
ETH price chart. Source: TradingView
Apart from ETH, other alternative cryptocurrencies also observed substantial gains before experiencing a sudden price drop, resulting in the liquidation of nearly $1 billion in open interest within an hour. The market saw millions in long and short positions being liquidated due to these abrupt price swings.
Confirmation of BlackRock's ETH ETF filing emerged following Nasdaq's public filing of the 19b-4 form on behalf of the asset manager with the SEC, proposing an ETF named the "iShares Ethereum Trust." This move signifies BlackRock's intention to expand its ETF endeavors beyond Bitcoin, eliciting varied reactions within the crypto community.
Bitcoin advocate Udi Wertheimer reacted to the news by referencing the popular meme of MicroStrategy CEO Michael Saylor, emphasizing Bitcoin as the singular true asset.
Others in the crypto space celebrated the increasing institutional interest in assets beyond Bitcoin. Raoul Pal noted that an ETH ETF would be highly advantageous for asset managers, allowing them to capture yield while offering price performance to ETF holders.
Additionally, some observed that BlackRock's interest in an ETH ETF implies a high likelihood for the approval of its spot Bitcoin ETF.
Independent Ethereum educator Sassal highlighted the potential impact of the ETF on ETH yields, anticipating that traders would highly value the real yield offered by a staked spot ETH ETF.