Updated Ethereum ETF Applications from Grayscale, BlackRock Amid SEC Delays

By: Isha Das

Grayscale Investments and BlackRock are persisting with their Ethereum ETF applications despite the expectation of rejection and recent delays in decisions from the U.S. SEC. Their updates follow the SEC's recent announcement that it would postpone decisions on multiple spot Ethereum ETF proposals.

Grayscale took a step towards transforming its existing Grayscale Ethereum Trust into a spot exchange-traded fund (ETF) by filing an S-3 registration statement with the SEC on April 23. Grayscale also filed an S-1 registration statement for a mini Ethereum ETF. Neither application has been approved by the SEC yet.

BlackRock's 19b-4 filing has undergone an amendment through Nasdaq, which plans to employ a new rule to list and trade shares of BlackRock’s proposed iShares Ethereum Trust. The update suggests cash-based creation/redemption opposed to in-kind methods, aligning it with rivals in Ethereum ETF proposals and earlier greenlit spot Bitcoin ETFs.

The SEC is scheduled to decide on these applications sometime in May, although prospects for approval are extremely low. Market sentiments reveal extremely low optimism with betting odds suggesting an 11% chance for approval of an Ethereum ETF by May 31.