Just few days back, on, the 9th of November, 2023 BlackRock had its iShares Ethereum Trust registered in Delaware, USA.

That's the same way they registered an iShares Bitcoin Trust 7 days before they applied to the Securities and Exchange Commission (SEC) for a Spot Bitcoin ETF. And as we all know, the potential approval of their Spot Bitcoin ETF is driving the crypto world nuts already and is the cause of the current mini-bull run we're having.

For those who don't know what is meant by the words "Bitcoin Spot ETF", I explained it simply and in some detail here.

But in a few words, it is simply making Bitcoins available on the Stock Market, in a way people can buy Bitcoin on the Stock Market without having to create a wallet and be distracted by all the security required to have and store Bitcoin.

It's not that BlackRock's application is the only application there is, but it simply is the biggest name on the list of applicants; with its 9.42 trillion dollars in assets under management.

With the registration of this Ethereum Trust, it is almost certain that BlackRock would also file for a Spot Ethereum ETF in the coming days or weeks, just like they did with Bitcoin.

Although it might be surprising that they are probably preparing to apply for an Eth Spot ETF when the Bitcoin Spot ETF has not been approved, the news is still arousing some level of excitement. This might be because it shows the world that BlackRock is confident that its Bitcoin ETF would be approved, which is why it is already preparing to file a second one for ETH even though the approval isn't final yet.

Confidence like this is really exciting and bullish.

The Future of Cryptocurrency ETFs

With the application for a Bitcoin Spot ETF and now the potential application for an Ethereum Spot ETF, we can already guess that other cryptocurrency ETFs might be applied for soon. Ripple, Cardano, Litecoin, Tron, Hive, etc!

In a few years, it is very possible that all the top cryptocurrencies that are not stablecoins will have their own ETFs, and this should all culminate in the Cryptocurrency basket ETFs.

The Cryptocurrency Basket ETFs

This is not an official term, I simply coined it to explain something that should happen in the future. I'd go on to explain it, but first, my apologies to those who already know about the basket feature of ETFs.

ETFs are known to be like a basket of different stocks. An ETF is not known to be just one stock/product. But rather it is like a basket of so many. What this means is, instead of being able to buy only one stock, for example, the Apple company's stock on the Stock Market or Microsoft Stock, or Amazon, etc. An ETF makes it possible for you to buy all of them at once as if they're one.

An ETF can have all three of them and call them The AMA ETF (AMA here to represent Apple Microsoft and Amazon). So instead of a person going to buy all three different stocks one by one, they'll simply buy The AMA ETF just one time and have all three just like that.

This is what ETFs do, they bring many stocks together, form a bundle and one can purchase hundreds of stocks as if they are one. In fact, the first time I ever heard of an ETF having just one product was when the Bitcoin ETFs started getting filed. I was surprised an ETF can have just one product.

Currently, there is an ETF with 500 different stocks in one, it is the S&P 500. This is the S&P's (The Standard and Poor's) ranking of the 500 largest companies listed on stock exchanges. You can buy all these stocks at once by simply buying this ETF which is a bundle of all 500. And the price would be the index of all 500 stocks.

This is what we should expect for Cryptocurrencies with time, if the Bitcoin and Ethereum Spot ETFs, alongside other cryptocurrencies, get approved. We can expect to see a lot of cryptocurrencies being bundled into one ETF. I'm already guessing they'll be called names like Coinmarketcap 100, and stuff like that.

Currently, the top cryptocurrencies already have similar movements. They mostly go up and down at the same time, and when Bitcoin is mooning, the altcoins usually follow suit. This similar movement phenomenon is very good for bundling up a number of different subjects in one ETF, it makes them all act like one even better.

A very interesting future awaits us.

The End

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