BlackRock Advances Ethereum ETF Application
By: Eva Baxter
BlackRock has taken a significant step toward the launch of its anticipated Ethereum Exchange-Traded Fund (ETF). The financial giant amended its S-1 registration statement for a spot Ethereum ETF in a filing dated May 29, 2023. This updated filing is seen as a crucial move toward receiving approval from the Securities and Exchange Commission (SEC).
The announcement follows the approval of 19b-4 listing rule changes by the SEC on May 23. Bloomberg ETF analyst James Seyffart called the filing 'almost certainly the engagement we were looking for,' expressing optimism that the S-1 statements for a spot Ethereum ETF could gain approval in the coming weeks. However, Seyffart also noted that the norm for such approvals can take months.
The updated S-1 filing fills several placeholder fields, including the details about seed funding. BlackRock Financial Management has generated $10 million in proceeds through a purchase of 400,000 shares at $25 per share. The fund will issue and redeem shares only in blocks of 40,000, with the fund's ticker being ETHA. The Wilmington Trust, National Association, will act as the Delaware trustee, while the Bank of New York Mellon (BNY Mellon) will function as the trust administrator and cash custodian.
One notable feature of the new S-1 filing is the reintroduction of in-kind creations and redemptions, allowing authorized participants to conduct transactions in cryptocurrency rather than cash. However, the filing acknowledges that the approval of in-kind transactions is uncertain.
Another highlight from the filing is the exclusion of Ethereum staking activities by BlackRock, aligning with Nasdaq's second May 22 19b-4 amendment on behalf of BlackRock. This move mirrors actions by other Ethereum ETF issuers who also removed the possibility of staking from their applications.
Overall, the updated S-1 filing reflects BlackRock's dedicated efforts toward the launch of an Ethereum ETF, potentially paving the way for increased institutional investment in Ethereum. For more detailed information, visit BlackRock's official page and BNY Mellon's official site.
