The United States spot Ether (ETH) exchange-traded funds (ETFs) have a “legit possibility” of launching by late June. This prediction comes after BlackRock updated a crucial filing necessary for the launch, signaling a potential breakthrough for Ethereum investment products.
On May 29, BlackRock updated its Form S-1 for the iShares Ethereum Trust (ETHA) with the Securities and Exchange Commission (SEC).
BlackRock Spot Ether ETF Update
This update followed the regulator’s approval of BlackRock’s 19b-4 filing nearly a week earlier. Both filings need approval for the ETF to commence trading, marking a significant milestone in the journey towards the launch of the first spot Ether ETFs in the U.S.
“Good sign. [Probably] see rest roll in soon,” Bloomberg ETF analyst Eric Balchunas remarked in a May 29 post on X (formerly Twitter). He noted that there would likely be another round of updates to fine-tune the SEC’s comments but maintained that an end-of-June launch was a legitimate possibility.
Despite this optimism, Balchunas estimated the approval odds for around July 4, suggesting that an earlier approval would be a long shot.
James Seyffart Weighs In
Bloomberg ETF analyst James Seyffart echoed this sentiment, stating that BlackRock’s updated S-1 filing is “almost certainly the engagement we were looking for,” indicating that issuers and the SEC are actively working towards launching spot Ethereum ETFs.
The amended S-1 filing from BlackRock provided crucial details about its seed capital investor — the entity responsible for allocating initial funds to the ETF to enable it to start trading. According to the filing, a BlackRock affiliate firm agreed to purchase $10 million in shares on May 21, 2024, taking delivery of 400,000 shares at a price of $25.00 per share. This transaction sets the stage for the ETF to list and trade under the ticker “ETHA.”
Hashdex Withdraws Spot Ether ETF Application
In a related development, Hashdex withdrew its bid for a spot Ether ETF just a day after receiving SEC approval alongside BlackRock and seven other issuers.
The anticipation surrounding these ETFs has sparked speculation about their potential impact on Ether’s market performance. Analysts believe the launch of spot Ethereum ETFs could propel ETH to new highs, with some suggesting that Wall Street might use these products as a bet on the growth of Web3 technologies.
Significant Outflows
However, there are also concerns about potential price pressure on ETH. The Grayscale Ethereum Trust (ETHE) could see significant outflows, estimated at $110 million of average daily outflows for weeks, as its discount narrows post-conversion to an ETF.
Overall, the progress of BlackRock and other issuers towards launching spot Ethereum ETFs marks a pivotal moment for the cryptocurrency market. If approved, these ETFs could provide mainstream investors with a regulated and convenient way to gain exposure to Ether, potentially driving significant interest and investment in the digital asset.
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