Nasdaq Files for SEC’s Approval of BlackRock’s Spot Ethereum ETF

• Nasdaq has filed for an Ethereum spot ETF with the SEC, partnering with BlackRock and Coinbase. It argues Ethereum should be regulated like commodities, citing surveillance capabilities and regulatory alignment.
• The proposed ETF would operate as a trust between BlackRock subsidiaries, with Coinbase providing custody and cold storage for Ether holdings.
• The ETF’s value would be calculated daily based on Ether prices from major exchanges, signaling growing institutional demand for crypto exposure. Its approval could lead to a Bitcoin ETF.

Ethereum exchange-traded funds (ETFs) have gained momentum recently as more institutions seek exposure to the popular cryptocurrency. Nasdaq has now filed a proposal with the SEC to list a spot Ethereum ETF, arguing it should be regulated similarly to commodity-based funds. The proposed ETF would be in collaboration with BlackRock and Coinbase.

Nasdaq’s Arguments

Nasdaq stated it has sufficient surveillance mechanisms through its membership in the Intermarket Surveillance Group and partnership with Coinbase. It claimed these provide protections on par with the CME futures market.

Regulatory Alignment

Nasdaq advocated for aligning spot Ethereum ETF rules with commodity ETFs. It said Bitcoin and Ethereum should be regulated as commodities, not securities.

Operations

The ETF would operate as a trust between BlackRock subsidiaries and rely on Coinbase for custody. Ether holdings would be kept in cold storage.

Valuation

The ETF’s net asset value would be calculated daily based on ETH prices from major spot exchanges. It would use the CME CF Ether-Dollar rate.

Closing Thoughts

The proposed Ethereum ETF signals growing institutional demand for crypto exposure. Its approval could pave the way for a spot Bitcoin ETF. For now, investors await the SEC’s ruling.