U.S. spot Ethereum exchange-traded funds could debut in June after asset management giant BlackRock filed an updated version of a key filing required by the Securities and Exchange Commission (SEC) before a security can be publicly listed.
On Wednesday, BlackRock filed its amended S-1 registration statement nearly a week after eight ETH ETFs, including BlackRock’s iShares Ethereum Trust, took a giant leap toward reality following the SEC’s greenlighting of 19b-4 forms tied to them. This move sparked bullish sentiment in the wider crypto market as it followed a surprising turnaround for the financial regulator.
The S-1 form disclosed a “Seed Capital Investor” had bought the initial shares for the proposed offering.
“On May 21, 2024, the Seed Capital Investor, an affiliate of the Sponsor, subject to conditions, purchased the Seed Creation Baskets, comprising 400,000 Shares at a per-Share price equal to $25.00,” the revised form reads. “The net asset value of the Trust was $10,000,000.”
The world’s largest asset manager also revealed that the shares would list and trade under the ticker “ETHA”.
A “Good Sign”
Bloomberg ETF analyst James Seyffart suggested that this is “almost certainly” the engagement the market should look for on the S-1 forms following the 19b-4 approvals last Thursday, as it shows that “Issuers and SEC are working towards spot Ethereum ETF launches,” Seyffart added.
Fellow Bloomberg ETF analyst Eric Balchunas labeled BlackRock’s updated S-1 statement registration a “good sign” in a May 29 post on X (aka Twitter).
There will likely be another round to “fine tune” SEC staff comments, he continued — but an “end of June launch [is] a legit possibility.” However, Balchunas maintained his approval odds for July 4, suggesting that an earlier approval by America’s top financial cop would be a “long shot.”
That being said, industry experts believe the ETH ETFs will catapult the price of Ether to new historic highs as some expect Wall Street to use it as a bet on Web3’s expansion. Others speculate the largest altcoin could endure bearish pressure as the Grayscale Ethereum Trust (ETHE) could see massive outflows for weeks after it converts — similar to the hemorrhaging witnessed with the Grayscale GBTC ETF.
BlackRock’s Bitcoin ETF has proven to be a resounding success for the firm since its launch in January. On Tuesday, BlackRock’s IBIT became the world’s largest BTC-based ETF, overtaking Grayscale, with almost $20 billion in assets under management.
