BlackRock Amends Spot Ethereum ETF Filing as Expectations Heat Up

Asset management giant BlackRock has filed paperwork with the SEC to amend its proposed spot Ethereum ETF following the recent approval for ETH ETF listings. This comes on the heels of the successful launch of several Bitcoin ETFs earlier this year.

BlackRock filed an amended S-1 form for its proposed spot ether (ETH) exchange-traded fund (ETF) that revealed more information about the product that was recently approved for listing in the U.S.

ETFs, or exchange-traded funds, allow investors to buy into the price action of cryptocurrencies without having to purchase the digital assets directly. Spot ETFs are tied to the current market price, while futures-based ETFs track the price of crypto futures contracts.

BlackRock’s amended S-1 filing shows a “Seed Capital Investor” has already purchased 400,000 initial shares of the proposed ETF at $25 each, for a total seed investment of $10 million. If approved, shares of the iShares Ethereum Trust ETF would trade under the ticker symbol “ETHA.”

Ethereum ETF Set for Launch in June: Analysts

Analysts are taking the filing as a positive sign that the Ethereum ETF could be approved and launch as soon as late June.

Good sign. Prob see rest roll in soon. Then prob one more round of fine-tune comments from Staff. End of June launch a legit possibility altho keeping my o/u date as July 4th https://t.co/WymshkTvat

— Eric Balchunas (@EricBalchunas) May 29, 2024

Getting the green light from the SEC would be a major milestone for Ethereum, cementing its status as the #2 cryptocurrency behind Bitcoin.

BlackRock has quickly become a major player in the crypto ETF space. Its Bitcoin ETF, which launched in January, has already taken in over $16 billion to become the largest publicly traded Bitcoin fund, surpassing longtime leader Grayscale.

Some predict the Ethereum and Bitcoin ETFs could grow to a $450 billion market as more traditional investors seek exposure to crypto in their portfolios. BlackRock CEO Larry Fink has said ETFs are the first step in his firm’s broader strategy to digitize financial markets using blockchain technology.

The surging popularity of crypto ETFs is the latest sign that digital assets are being embraced by Wall Street. Trading volumes and prices for both Bitcoin and Ethereum have soared this year on the back of rising institutional adoption.

Ethereum, the world’s second-largest cryptocurrency, enables decentralized apps and financial services on its blockchain network. Its price has risen over 70% since the start of the year in anticipation of ETF approvals.

While the SEC has been cautious about approving crypto ETFs due to concerns over market manipulation and volatility, the success of the Bitcoin funds may increase the odds for Ethereum. If approved, the BlackRock ETF would give a major boost to mainstream adoption of the emerging asset class.

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