BlackRock’s S-1 Fuels Optimism for June Ethereum ETF Launch
The launch of United States spot Ether exchange-traded funds (ETFs) by late June appears increasingly likely following BlackRock’s update to a crucial filing. Analysts are optimistic after BlackRock updated its Form S-1 for its iShares Ethereum Trust (ETHA) on May 29. This update came nearly a week after the Securities and Exchange Commission (SEC) approved its 19b-4 filing, both of which are necessary for the ETF to commence trading.
Positive Signs from Analysts
Bloomberg ETF analyst Eric Balchunas noted in a May 29 post on platform X that this update is a “good sign” and suggested that more updates from other issuers are likely to follow soon. He predicted that there will be another round of fine-tuning SEC comments, making an end-of-June launch a “legit possibility.” However, Balchunas kept his approval odds around July 4, considering an earlier approval a “long shot.”
Fellow Bloomberg ETF analyst James Seyffart echoed this sentiment, stating that BlackRock’s updated S-1 is “almost certainly the engagement we were looking for,” indicating that issuers and the SEC are working towards launching spot Ethereum ETFs.
Details of BlackRock’s Updated S-1
The amended S-1 filing provided details about BlackRock’s seed capital investor, who has allocated funds to enable trading. On May 21, the investor, an affiliate of BlackRock, agreed to purchase $10 million in shares and took delivery of 400,000 shares at $25.00 per share. The filing also revealed that the ETF will trade under the ticker “ETHA.”
Also Read: BlackRock Integrates Bitcoin ETF into Income and Bond Funds
Market Reactions and Speculations
The same day, Hashdex pulled its bid for a spot Ether ETF, despite SEC approval alongside BlackRock and seven other issuers. A source told Cointelegraph that Hashdex no longer plans to move forward with a single-asset Ether ETF.
Analysts predict that the approval and launch of Ethereum ETFs could drive ETH to new highs, with some speculating that Wall Street might use it as a bet on Web3’s growth. Others warn that ETH could face price pressure due to potential average daily outflows of $110 million from the Grayscale Ethereum Trust (ETHE) as it converts and its discount narrows.
