ETFs
Ethereum ETFs move closer to launch as BlackRock updates filing
Financial giant BlackRock Wednesday evening modified his file with the SEC for its proposed Ethereum spot exchange-traded fund (ETF). The May 29 update for iShares Ethereum Trust is the first tangible sign of progress toward market availability of an ETH-based ETF since explosive approval of the new financial vehicle last week.
“This is almost certainly the commitment we were looking for,” observed Bloomberg ETF analyst James Seyffart on Twitter. “Issuers and SEC working on timely launch of Ethereum ETF.”
His colleague Eric Balchunas acknowledged that it was a “good sign,” noting that other candidates would likely follow suit. If the SEC quickly provides them with “an additional round of specific feedback,” he said it’s possible that Ethereum ETFs could debut next month.
“At the end of June, launch a legitimate possibility, [although] keeping my plus/minus date as July 4th,” Balchunas tweeted.
BlackRock’s proposed fund will trade under the ticker ETHA, and the company has clarified that it will not allocate any portion of its Ethereum for staking, meaning that the potential returns of its ETF “will deviate from those that would have been obtained by buying and holding [Ethereum] directly.”
black rock first filed a Form S-1 with the SEC for its product in November, continued similar proposals Since ARK Invest, Fidelity and VanEck. Crypto custodian Grayscale is also in the mix, looking to convert its Grayscale Ethereum Trust (ETHE) in a spot Ethereum ETF. A similar conversion would have paved the way for spot Bitcoin ETFs, which were approved in January and led to a surge in the price of BTC and bullish sentiment in the crypto sector.
With Bitcoin ETFs spot now holding over a million BitcoinHopes are high that funds based on the second largest cryptocurrency by market capitalization will also drive markets higher.
While attention immediately turned to Ethereum following the approval of Bitcoin ETFs, the prospects for ETH-based equivalents seemed gets darker over the next few months. But the mood improved considerably two weeks ago with separated reports that the SEC was preparing to approve them after all.
The SEC’s green light is seen by many as part of a broader shift in US crypto policyA crucial development This is due, in part, to the fact that the digital asset sector has become a more important factor in election year politics.