• 19 June, 2024

BlackRock Amends S-1 Filing For Ethereum ETF With the SEC

On May 29, BlackRock amended its S-1 registration statement after nearly a week after the SEC approved 19b-4 forms for eight Ethereum ETFs. The newly updated S-1 brings with it the possibility of in-kind creation and redemptions. This means that authorized participants can conduct transactions using cryptocurrencies instead of cash. 

Bloomberg ETF analyst Eric Balchunas stated that it was a good sign and probably will see the rest roll in soon. He said there is a legit possibility for launch at the end of June but he kept his approval odds for July 4. 

Details Disclosed in S-1 Filing

BlackRock’s proposed iShares Ethereum Trust (ETHA) states that it won’t engage in Ethereum staking, which aligns with Nasdaq’s May 22 19b-4 amendment.  This signifies that the returns from the ETH will not exactly match the returns one would get directly from buying and holding Ethereum. 

Grayscale’s Ether ETF Might Face $110M Daily Outflows

The filing also includes details about seed funding. Based on the filing, the fund has generated $10 million in proceeds through a purchase by BlackRock Financial Management of 400,000 shares at $25 per share. Furthermore, iShares Delaware Trust Sponsor, may collect upto $500,000 in fees per annum. The filing read,

“The Sponsor has agreed to assume the marketing and the following administrative expenses incurred by the Trust: the fees of the Trustee, the Delaware Trustee and the Trust Administrator, the Custodians’ fee (the “Custodians’ Fee”), NASDAQ listing fees, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses and up to $500,000 per annum in ordinary legal fees and expenses.”

Will There Be Ether ETF by November As Predicted by JPMorgan?

Kenneth Worthington, an analyst at JPMorgan said that they view this ETF approval, and crypto more broadly, as an increasingly political issue ahead of the 2024 U.S presidential election. Because of this, they expect trading of the spot ETH ETF to begin well-ahead of November.   

Approval of 19b-4 Filing

On May 23, the SEC approved the 19b-4 filings for eight Ethereum ETFs, VanEck, BlackRock, Grayscale, Fidelity, Franklin Templeton, ARK 21Shares, Bitwise, and Invesco Galaxy. The decision to approve Spot ETH ETF was made despite speculation that the SEC was investigating whether to classify Ether as a security. 

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