Ethereum
Blackrock Updates S-1 Filing for Ethereum ETF, Marking a Step Toward Launch
black rock amended the S-1 registration statement for its Ethereum spot ETF in a May 29 filing, marking a step toward approval.
The filing builds on BlackRock’s original registration statement, originally filed in November 2023.
Bloomberg ETF Analyst James Seyffart called the filing a step toward launch after the SEC approved changes to Listing Rules 19b-4 on May 23.
He said:
“This is almost certainly the commitment we were looking for…”
Seyffart reiterated his belief that S-1 filings could be approved in the coming weeks, which would help pinpoint the launch of the Ethereum ETF, but admitted that “the norm is a few months.”
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The S-1 filing populates several reserved fields, including details about startup financing.
According to the filing, the fund generated $10 million in proceeds through a seed capital purchase by BlackRock Financial Management of 400,000 shares at $25 per share.
The sponsor, iShares Delaware Trust Sponsor, may earn up to $500,000 in fees per year. The last deposit does not calculate a percentage-based sponsor fee.
The trust will issue and repurchase shares only in blocks of 40,000. The fund symbol is ETHA.
Wilmington Trust, National Association will serve as Delaware’s trustee. Bank of New York Mellon will act as trust administrator and cash custodian.
Repurchases in kind considered
The new S-1 also reintroduces the possibility of in-kind creation and redemptions, which would allow transactions in crypto rather than cash between authorized participants.
He acknowledges that approval for in-kind transactions is not guaranteed and the timing is uncertain.
BlackRock’s original S-1 filing mentioned the possibility of in-kind creations and buyouts in passing. However, a Notice of Amendment to Nasdaq Filing 19b-4 in April said authorized participants would rely solely on cash when creating and redeeming shares of the fund.
The latest S-1 also explicitly states that BlackRock will not engage in staking ETH, which aligns with Nasdaq Second Amendment 19b-4 of May 22 on behalf of BlackRock.
All other ETH ETF issuers have also removed the ability to stake from their apps.