BlackRock Submits Updated S-1 Form for Potential Launch of Ethereum ETF
Analysts are predicting that spot Ethereum exchange-traded funds (ETFs) could be introduced in the United States by the end of June.
BlackRock, a prominent asset management company, recently filed a revised Form S-1 for its iShares Ethereum Trust (ETHA), a crucial step towards the approval and eventual trading of the ETF.
The Securities and Exchange Commission (SEC) had previously given the green light to BlackRock’s 19b-4 filing, clearing the path for the ETF.
The latest update to the S-1 form signifies progress in the communication between issuers like BlackRock and the SEC, hinting at potential launches of spot Ethereum ETFs in the near future.
ETF analyst Eric Balchunas from Bloomberg expressed positivity about the situation, considering it a promising development and anticipating more filings to be submitted shortly.
Balchunas believes that a launch by the end of June is a realistic possibility, although he still estimates the chances of approval around July 4, considering an earlier approval unlikely.
Another Bloomberg ETF analyst, James Seyffart, also acknowledged that BlackRock’s updated S-1 form demonstrates the desired interaction between issuers and the SEC, indicating advancement towards the launch of spot Ethereum ETFs.
The revised filing by BlackRock disclosed information about the initial investor in the iShares Ethereum Trust. An affiliate of BlackRock agreed to purchase $10 million worth of shares on May 21, 2024, acquiring 400,000 shares at $25.00 per share.
In contrast, 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 plans to pursue a single asset Ether ETF.
Industry experts predict that the approval of Ethereum ETFs will impact the price of ETH positively, as some see it as a significant bet on the growth of Web3.
Furthermore, the recent approval of Ethereum ETFs has paved the way for more cryptocurrency investment products, according to research from TD Cowen’s Washington Research Group.
Although the speed of approval caught some by surprise, the research group views it as an inevitable outcome following the approval of Bitcoin ETFs earlier this year.
Jaret Seiberg, a member of TD Cowen’s team, pointed out that the Ethereum ETF approval arrived about six months earlier than anticipated but was foreseeable after the SEC approved crypto futures ETFs.
Moreover, the approval of spot ETH ETFs potentially solidifies Ether’s position as a non-security, according to experts in the industry.