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Blackrock Updates S-1 Filing for Ethereum ETF, Marking a Step Towards Launch
Black rock amended the S-1 registration statement for its Ethereum spot ETF in a May 29 filing, marking a step closer to approval.
The filing is based on BlackRock’s original registration statement, which was initially filed in November 2023.
Bloomberg ETF Analyst James Seyffart called the filing a step closer to launch after the SEC approved changes to Listing Rule 19b-4 May 23.
He said:
“This is almost certainly the commitment we were looking for…”
Seyffart reiterated his belief that S-1 filings could gain approval in the coming weeks, leading to the launch of Ethereum ETFs, but admitted that “months are the norm.”
Placeholder data filled out
The S-1 filing fills in several placeholder fields, including initial financing details.
According to filings, the fund generated $10 million in proceeds through BlackRock Financial Management’s initial equity purchase of 400,000 shares at $25 per share.
The sponsor, iShares Delaware Trust Sponsor, can collect up to $500,000 in fees per year. The latest statement does not calculate a percentage-based sponsor fee.
The trust will only issue and redeem shares in blocks of 40,000. The fund’s ticker is ETHA.
Wilmington Trust, National Association, will serve as Delaware trustee. Bank of New York Mellon will act as trustee of the trust and custodian of the cash.
Refunds in kind considered
The new S-1 also reintroduces the possibility of in-kind creation and redemption, which would allow transactions in cryptocurrency rather than cash between authorized participants.
It recognizes that approval of in-kind transactions is not guaranteed and that the timing is uncertain.
BlackRock’s original S-1 filing mentioned the possibility of pass-through in-kind creations and redemptions. However, a notice of change has been filed on Nasdaq’s 19b-4 filing April said authorized participants will rely solely on cash when creating and redeeming fund shares.
The latest S-1 also explicitly states that BlackRock will not engage in ETH staking, aligning with Nasdaq Second Amendment 19b-4 on May 22 on behalf of BlackRock.
All other ETH ETF issuers they have also removed the ability to stake from their applications.