BlackRock updated its Form S-1 for its spot Ether ETF, signaling progress towards potential ETF launches, which analysts view positively as a step forward in collaboration between issuers and the SEC.
Analysts suggest that United States spot Ether (ETH) exchange-traded funds (ETFs) could potentially launch by late June, following BlackRock’s update of a crucial filing required for the launch.
Ethereum ETF Launch Expected Following BlackRock’s Update
On May 29, BlackRock updated its Form S-1 for the iShares Ethereum Trust (ETHA) with the Securities and Exchange Commission (SEC), shortly after the regulator approved its 19b-4 filing. Both approvals are necessary for the ETF to commence trading.
According to Bloomberg ETF analyst Eric Balchunas, this update is seen as a positive development. He commented on May 29 that the revised filing signals progress, with expectations for further adjustments based on SEC feedback. Balchunas noted a “legit possibility” of an ETF launch by the end of June, though he maintained that approval by July 4 is more likely, considering typical regulatory processes.
Source: Eric Balchunas
James Seyffart, another Bloomberg ETF analyst, described BlackRock’s updated S-1 as a crucial step towards launching spot Ethereum ETFs. He emphasized that this engagement between issuers and the SEC indicates active efforts to finalize the ETF launch.
BlackRock’s amended S-1 also disclosed details about its seed capital investor, responsible for initial fund allocations to facilitate trading.
Details and Implications of Ethereum ETF Developments
On May 21, a BlackRock affiliate firm agreed to purchase $10,000,000 worth of Shares for the iShares Ethereum Trust (ETHA), acquiring 400,000 Shares at a per-Share price of $25.00, according to a recent filing with the Securities and Exchange Commission (SEC). The ETF is set to list and trade under the ticker symbol “ETHA,” as confirmed in the filing.
Simultaneously, on the same day, Hashdex withdrew its application for a spot Ether ETF, just one day after the SEC granted approval to Hashdex, BlackRock, and seven other issuers. Hashdex cited no further intent to proceed with a single-asset Ether ETF.
Industry analysts foresee significant implications for Ethereum with the launch of these ETFs. Many expect ETH to surge to new highs, viewing the ETFs as Wall Street’s endorsement of Web3’s growth potential. However, there are also concerns that ETH’s price could face downward pressure. This speculation arises as Grayscale Ethereum Trust (ETHE) prepares for conversion, potentially causing average daily outflows of $110 million and narrowing its discount over the coming weeks.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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