BlackRock receives $10M for Ethereum ETF, starting signal has been given
BlackRock and Grayscale have made significant steps into the world of Ethereum Exchange Traded Funds (ETFs). BlackRock, the world’s largest fund manager, has secured a substantial $10 million investment for its upcoming iShares Ethereum Trust. At the same time, Grayscale, the manager of the world’s largest Bitcoin ETF, has appointed Coinbase as custodian for what will likely become one of the largest spot Ethereum ETFs. These developments mark a significant shift in the acceptance of Ethereum as an investment product in the mainstream market.
BlackRock cashes in investment for Ethereum ETF
Out submitted documents the SEC reveals that BlackRock has received a $10 million investment from a seed investor for its upcoming iShares Ethereum Trust. This investor has purchased 400,000 shares for $25 each and will act as a “statutory underwriter.” The approval of spot Ethereum ETFs by the SEC last week, following adjustments to staking filings, has paved the way for this investment and further developments in the market.
Grayscale chooses Coinbase as its custodian
Grayscale, known for its leading role in Bitcoin investment products, has appointed Coinbase as custodian for its upcoming Ethereum ETF. With Coinbase as its custodian, which already controls 90% of the total assets of US spot Bitcoin ETFs, Grayscale’s Ethereum ETF is expected to take a prominent position in the market. However, experts raise concerns about centralization and the potential security risks that could come with it, given Coinbase’s important role as an Ethereum validator and custodian for multiple ETFs.
Warning about security risks and centralization
Although the SEC’s approval of Ethereum ETFs marks a special event, experts warn nevertheless for possible security risks and centralization. The fact that Ethereum validators like Coinbase also become custodians and guardians of the ETFs raises questions about the decentralization of the network and the risks this poses to investors.
