BlackRock Applies for Ethereum Spot ETF, Crypto Market Experiences Severe Fluctuation

On the evening of November 9, BlackRock registered the iShares Ethereum Trust in Delaware, marking the company's first step towards applying for a Spot ETF for Ether. This move is consistent with its previous application for a Spot ETF for Bitcoin.

After the news broke, the price of ETH skyrocketed from below $1900 to above $2000.

A few hours later, the documents submitted by the US Nasdaq further confirmed BlackRock's Ethereum ETF plan. The documents indicate that once regulatory approval is obtained, BlackRock will seek to list the product on the US stock exchange.

According to the application documents, a certain crypto trading platform will act as the custodian of the ETH held by the product, while the cash will be held by an unnamed third party. BlackRock has also signed a market supervision agreement with this trading platform, which is considered one of the key factors for this type of ETF to gain SEC approval.

In response to potential concerns from the SEC regarding monitoring and sharing, BlackRock pointed out in its application that the CME Group's Ether futures prices are highly correlated with the spot ETH prices. They believe that if the CME can monitor fraud in futures ETFs and spot exchanges, then such monitoring should apply to all types of products.

Market analysts point out that several other institutions have also submitted applications for Ethereum Spot ETFs. At the same time, there are reports that BlackRock is optimistic that the SEC will approve its Bitcoin Spot ETF in January next year.

However, the crypto market then experienced significant fluctuations. Following the surge of ETH, the market suddenly corrected. Bitcoin soared from around $35,000 to nearly $38,000, then quickly dropped back to around $36,300. ETH also briefly fell below $2,000. The altcoin market was even more volatile, with several projects experiencing substantial pullbacks.

Data shows that the total liquidation in the crypto market within 24 hours reached 493 million USD, with long positions liquidating at 219 million USD and short positions liquidating at 274 million USD. Bitcoin and Ethereum are the two currencies with the largest liquidation amounts.

After the market stabilized again, tokens related to the Ethereum ecosystem performed strongly, especially Staking concept coins, with several projects seeing an increase of nearly 20%.

This series of events shows that despite the growing interest from institutional investors in crypto market ETFs, the market still faces the challenge of high fluctuations. Investors need to remain cautious when participating in this emerging market and fully recognize the risks involved.