An amended S-1 registration statement for a spot Ethereum ETF by BlackRock was filed on May 29, signaling progress towards potential approval. This updated filing expands on BlackRock’s original registration statement, initially submitted in November 2023.
According to Bloomberg ETF analyst James Seyffart, the recent filing is a significant step towards the launch of the ETF, especially after the SEC approved 19b-4 listing rule changes on May 23. Seyffart expressed confidence that the S-1 statements could receive approval in the coming weeks, even though the typical timeline for such approvals is generally measured in months.
The latest filing includes details regarding seed funding for the fund. It reveals that BlackRock has generated $10 million through a seed capital purchase, with 400,000 shares bought at $25 per share by BlackRock Financial Management. The sponsor, iShares Delaware Trust Sponsor, stands to collect up to $500,000 in fees per year, although the filing does not specify a percentage-based sponsor fee. The fund will issue and redeem shares in blocks of 40,000, with the ticker symbol ETHA.
Wilmington Trust, National Association will serve as the Delaware trustee, while Bank of New York Mellon will act as the trust administrator and cash custodian.
The updated S-1 also reintroduces the option of in-kind redemptions and creations, which would allow for cryptocurrency rather than cash transactions among authorized participants. However, the filing notes that approval for in-kind transactions is not guaranteed and the timing is uncertain.
BlackRock has confirmed that it will not participate in ETH staking, a stance consistent with Nasdaq’s second amendment on behalf of BlackRock on May 22. Other Ethereum ETF issuers have also eliminated the possibility of staking from their applications.
