Ether spikes 10% to its highest level in 6 months as BlackRock files for a spot ETF backed by the crypto
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- Ether jumped 10% to a six-month high before paring some of those gains on Friday.
- BlackRock, the $8.5 trillion asset manager, filed for a spot ether ETF on the Nasdaq exchange.
- On Thursday, reports emerged BlackRock had registered the corporate entity "iShares Ethereum Trust."
Ether, the world's second largest cryptocurrency by market cap, surged as much as 10% to hit a six-month high before paring some of its gains Friday.
The ethereum-based token hovered at $2,076 around 9:00 a.m. in New York, up about 2.5%. Over the past five days, it has gained 10.5%, putting its monthly advance at 33.4%.
The latest price jump followed Thursday's development that BlackRock, a $8.5 trillion asset manager, had filed for a spot ether ETF with the Nasdaq exchange.
Reports emerged that BlackRock also registered a corporate entity in Delaware called "iShares Ethereum Trust," with iShares being the name of the company's ETF division.
Like bitcoin, ether has had a banner year in 2023, gaining 74%. Both tokens have skyrocketed on optimism over renewed institutional interest as players like Grayscale, Fidelity, BlackRock have already applied for a spot bitcoin ETF.
"If act one is a spot Bitcoin ETF, then act two is a spot Ethereum ETF," Diogo Mónica, co-founder of crypto firm Anchorage Digital, said in emailed comments. "A spot Ethereum ETF would have a similar impact as a Bitcoin counterpart, providing a regulated and accessible wrapper for institutions and consumers to participate in the ETH ecosystem. But Ethereum adds an extra layer of intrigue as a proof-of-stake asset, which means underlying ETH could also be staked for additional rewards."