BlackRock Files Revised S-1 Form for Spot Ethereum ETF as Launch Looms
Analysts suggest that spot Ethereum exchange-traded funds (ETFs) in the United States could potentially launch by late June.
BlackRock, a leading asset management firm, recently updated its Form S-1 filing for its iShares Ethereum Trust (ETHA), a crucial step towards the ETF’s approval and subsequent trading.
The Securities and Exchange Commission (SEC) had already approved BlackRock’s 19b-4 filing, paving the way for the ETF.
The recent update to the S-1 form indicates progress in the engagement between issuers like BlackRock and the SEC, suggesting that spot Ethereum ETF launches are on the horizon.
Spot ETH ETFs Could Start Trading by June
ETF analyst Eric Balchunas from Bloomberg expressed optimism about the development, considering it a positive sign and expecting other filings to follow suit soon.
Balchunas believes that an end-of-June launch is a realistic possibility, although he still estimates the odds of approval around July 4, considering an earlier approval a long shot.
“Good sign. Prob see rest roll in soon. Then prob one more round of fine-tune comments from Staff. End of June launch a legit possibility altho keeping my o/u date as July 4th,” he wrote on X.
Another Bloomberg ETF analyst, James Seyffart, also noted that BlackRock’s revised S-1 form indicates the desired engagement between issuers and the SEC, suggesting progress toward launching spot Ethereum ETFs.
This is almost certainly the engagement we were looking for on the S-1’s following the 19b-4 approvals. Issuers and SEC are working towards spot Ethereum ETF launches. https://t.co/xj3oyZvZEA
— James Seyffart (@JSeyff) May 29, 2024
The updated filing by BlackRock provided details about the seed capital investor for the iShares Ethereum Trust.
A BlackRock affiliate firm agreed to purchase $10 million worth of shares on May 21, 2024, and took delivery of 400,000 shares priced at $25.00 per share.
Meanwhile, Hashdex, another issuer seeking approval for a spot Ether ETF, withdrew its application shortly after the SEC’s approval.
A source familiar with the matter revealed that Hashdex no longer intends to pursue a single asset Ether ETF.
Spot ETH ETF Approval to Influence Price
Analysts anticipate that the introduction of Ethereum ETFs will drive the price of ETH to new highs, as some view it as a Wall Street bet on the growth of Web3.
However, there are also speculations about potential price pressure on ETH due to the Grayscale Ethereum Trust (ETHE).
As the ETHE converts and its discount narrows, analysts predict average daily outflows of around $110 million for several weeks.
Meanwhile, the recent approval of Ethereum ETFs has opened the doors for more crypto investment products, according to research from TD Cowen’s Washington Research Group.
While the speed of approval caught some off guard, the research group viewed it as an inevitable outcome following the approval of Bitcoin ETFs earlier this year.
Jaret Seiberg, a member of TD Cowen’s team, noted that the Ethereum ETF approval came about six months earlier than expected but was predictable after the Securities and Exchange Commission (SEC) gave the green light to crypto futures ETFs.
Furthermore, the approval of spot ETH ETFs potentially confirms Ether’s status as a non-security, according to industry experts.
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