BlackRock Ethereum ETF goes one step further: S-1 document revised, regulatory approval in sight

BlackRock made an amendment to the S-1 registration statement for its spot Ethereum ETF in a May 29 filing, marking a major step toward approval for the fund.

This amendment follows BlackRock's original registration statement filed in November 2023.

Bloomberg ETF analyst James Seyffart believes that after the SEC approved the 19b-4 listing rule change on May 23, the submission of this document is a key step before the launch of the ETF.

Seifert said this is almost certainly a long-awaited development and reiterated his belief that the S-1 declaration could be approved in the coming weeks, although it typically takes months.

Supplementary fill in the placeholder fields

The S-1 file fills out several placeholder fields, including details about the seed funding. ("Placeholder fields" typically refer to locations in draft documents that are set aside to be filled in with specific data or details at a later stage. This practice is common in legal documents and financial reports to ensure that all The necessary information is eventually included).

The fund has purchased 400,000 shares at $25 per share through seed capital purchases from BlackRock Financial Management, generating a total of $10 million in proceeds, the filing shows.

iShares Delaware Trust Sponsor As a sponsor, you may charge up to $500,000 for related services or products. Additionally, the latest filing does not include a calculation or explanation of percentage-based sponsorship fees.

This may mean that the sponsor fee is fixed rather than based on a specific percentage. This is often associated with financial products or services, and the sponsor may charge a fee for the support or services provided.

The trust will issue and redeem shares in units of only 40,000 shares, and the fund's ticker symbol is ETHA.

Wilmington Trust Company, will serve as trustee for the State of Delaware, and BNY Mellon will serve as trust administrator and cash custodian.

Spot redemption is considered

The latest S-1 filing again proposes the use of spot Bitcoin for the creation and redemption of fund shares, which would enable authorized participants to conduct transactions via cryptocurrency rather than cash. However, the document clearly states that there is no certainty about the approval of spot trading, and the timing of its implementation has not yet been determined.

While BlackRock briefly explored the potential for spot creation and redemption in its original S-1 filing, it noted in its April amended 19b-4 filing with Nasdaq that Authorized Participants Only cash will be used as a means of transaction when processing the creation and redemption of Fund shares.

The latest S-1 filing makes it clear that BlackRock will not engage in staking activities for Ethereum (ETH), in keeping with the second 19b-4 amendment filed by Nasdaq on May 22 on behalf of BlackRock consistent. Meanwhile, all other issuers applying for Ethereum ETFs have also removed the staking option from their proposals.

Conclusion：

The latest S-1 filing update for BlackRock’s Ethereum ETF shows the fund’s important steps toward regulatory approval and market launch. By filling in key placeholder fields and clarifying future operational directions, BlackRock demonstrates its commitment to bringing this financial product to market.

Despite some uncertainties, such as the approval and implementation timing of spot trading, market expectations for this innovative financial instrument remain high. The next few weeks will be critical, as market participants and investors will pay close attention to the SEC's final decision.

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