BlackRock and Grayscale File Amendments for Ethereum ETF Applications Amid SEC Delay

BlackRock and Grayscale File Amendments to Ethereum ETF Applications After SEC Delays Decision

In a strategic move following the SEC’s delay in deciding on multiple proposals for Ethereum ETFs, investment giants BlackRock and Grayscale have filed amendments to their spot Ethereum exchange-traded fund applications.

BlackRock, in an updated 19-b 4 filing, introduced a proposed rule change to its plan to list and trade shares in the iShares Ethereum Trust. The amendment suggests a shift to cash-based creation and redemptions, diverging from the in-kind process. This change aligns with the structure of other Ethereum ETF applications and approved U.S. spot Bitcoin ETFs.

On the other hand, Grayscale has filed an S-3 registration statement to convert its existing Grayscale Ethereum Trust into a spot Ethereum ETF, with plans to list shares on NYSE Arca under the ticker ETHE. Additionally, Grayscale filed a Form S-1 registration document for a mini Ethereum ETF, trading under the ticker ETH on NYSE Arca.

The flurry of filings comes after the SEC’s announcement of a delay in its decision on spot Ethereum ETF proposals from Grayscale Investments and Franklin Templeton. Despite initial optimism following the approval of spot Bitcoin ETFs in January, expectations for swift approval of spot Ethereum ETFs have dwindled.

Investment bank JP Morgan and Bloomberg Intelligence have expressed skepticism about the likelihood of spot Ethereum ETF approval by the upcoming May deadline. However, the recent filings indicate that issuers are not giving up the fight for approval.

The developments in the ETF space highlight the ongoing efforts of major players to navigate regulatory hurdles and offer investors exposure to digital assets. The SEC’s decision on Ethereum ETFs remains highly anticipated, with the industry closely monitoring the evolving landscape.

Edited by Andrew Hayward.