Key Takeaways:
Multinational investment giant BlackRock has submitted an updated S-1 filing with the US Securities and Exchange Commission (SEC) for its upcoming iShares Ethereum Trust ETF. This follows the SEC’s initial approval of Form 19-b from several ETF issuers, including BlackRock.
BlackRock Submits Updated S-1 Filing For Its Spot Ethereum ETF
Markets experts and analysts now believe that spot exchange-traded funds (ETFs) backed by the second-largest cryptocurrency by market capitalization have a “legit possibility” of launching by late June.
Form S-1 is a mandatory registration form that companies must submit to the SEC before listing their products on a US public exchange, such as the New York Stock Exchange (NYSE) or NASDAQ.
Last week, the federal securities regulator gave the green light for spot Ether ETFs from major Wall Street firms, including BlackRock, Fidelity, and VanEck, among others, with the iShares Ethereum Trust coming out on top.
The amended S-1 form submitted by the asset manager is crucial in launching the Ether-backed ETFs. It has garnered attention for detailed disclosures and BlackRock’s commitment to the investment vehicle.
First Batch of Ethereum ETFs Could Begin Trading By Late June or Early July
The update is significant as it comes amid preparations for a possible launch by the end of June or early July. Bloomberg’s ETF analysts James Seyffart and Eric Balchunas view this as a clear indicator of the ongoing communications between issuers and the SEC, emphasizing the market’s readiness for these crypto-based financial products.
In an X post on Wednesday, Balchunas wrote that there will likely be another discussion round to “fine-tune” the SEC’s comments on the amended filing. Either way, the analyst predicts the ETF to be approved around July 4th, adding that an earlier approval would be a “long shot”.
He also noted that the possible launch of spot Ethereum ETFs is a “good sign” for the crypto industry.
Seyffart said BlackRock’s updated S-1 is “almost certainly” the engagement the market was looking for as it is proof of issuers and the SEC working towards spot Ethereum ETF launches.
In its amended form, BlackRock revealed information about a seed capital investor that allocated money to the fund so that it could begin trading. On May 21, the investor, a BlackRock-affiliated firm, agreed to purchase $10 million worth of shares in the iShares Ethereum Trust and took delivery of 400,000 shares for $25.00 each on the same day, the filing read.
The company also announced that the iShares Ethereum Trust ETF would list and trade under the ticker symbol “ETHA”. BlackRock believes its move to launch a second crypto-related product, following the iShares Bitcoin Trust ETF, offers a new avenue for investors to engage with digital assets through a regulated framework.
BlackRock is the World’s Largest Corporate Holder of Bitcoin With $19.68 Billion in AUM
The iShares Bitcoin Trust (IBIT), which debuted in January, recently surpassed Grayscale Bitcoin Trust (GBTC) to become the single-largest Bitcoin ETF. As of press time, IBIT holds approximately $19.68 billion worth of Bitcoin (BTC) in assets under management, while GBTC holds BTC valued at $19.65 billion.
BlackRock’s amended filing was submitted on the same day Latin America digital asset management firm Hashdex withdrew its proposal for a spot Ethereum ETF. The fund had been approved by the SEC alongside BlackRock and seven other issuers.
A source familiar with the matter said Hashdex “no longer intends” to move forward with its bid to launch a “single asset” Ether ETF, underlining the unpredictable and competitive nature of the ETF landscape.
ETH Could Face Massive Price Pressure As Grayscale Converts its Ethereum Trust Fund into an ETF
Crypto analysts say the launch of Ethereum spot ETFs will see ETH reach new highs as some speculate Wall Street will use the venue to bet on Web3. Others speculate that Ethereum could face price pressure as Grayscale converts its Ethereum ETF – Grayscale Ethereum Trust (ETHE) – from a trust fund to a spot market-traded ETF.
It is estimated that ETHE could experience an average daily outflow of $110 million for several weeks following the conversion. Grayscale Ethereum Trust is the world’s largest Ethereum investment product, holding around $11 billion worth of ETH in AUM. The fund has over 1.8 million ETH shares that are held by 26 institutional investors, including ARK Investment Management, Rye Brook Capital, and Voya Prime Rate Trust.
At the time of writing, Ethereum (ETH) is trading at $3,776 – down 2.28% over the last 24 hours.
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