Blackrock has updated the S-1 filing for its Ethereum ETF, taking a step toward launch.
BlackRock amended the S-1 registration statement for its spot Ethereum ETF filed May 29, marking a step toward approval.
The filing builds on BlackRock’s original registration statement, first filed in November 2023.
Bloomberg ETF analyst James Seyffart said the filing is a step toward launch after the SEC approved the 19b-4 listing rule change on May 23.
He said:
“This is almost certainly the engagement we have been looking for…”
Seyffart reaffirmed his belief that the S-1 statement could be approved in the coming weeks, confirming the launch of the Ethereum ETF, but acknowledged that “the norm is several months.”
Placeholder data has been populated.
The S-1 filing fills out several placeholder fields, including details about seed financing.
The fund generated $10 million in proceeds from BlackRock Financial Management’s initial capital purchase of 400,000 shares at $25 per share, according to the filing.
As a sponsor, iShares Delaware Trust Sponsor may collect fees of up to $500,000 per year. The latest submissions do not calculate percentage-based sponsor fees.
The trust will issue and redeem shares in blocks of only 40,000. The fund’s ticker is ETHA.
Wilmington Trust, National Association, will serve as Delaware trustee. Bank of New York Mellon will serve as trustee and custodian of the cash.
Consider redemption in kind
The new S-1 also reintroduces the possibility of in-kind issuance and redemption, allowing cryptocurrency transactions rather than cash transactions between authorized participants.
This acknowledges that approval of spot transactions is not guaranteed and the timing is uncertain.
BlackRock’s original S-1 statement mentioned the possibility of in-kind creation and redemption. However, a notice of amendment to Nasdaq’s 19b-4 filing last April stated that authorized participants would rely solely on cash to create and redeem shares in the fund.
Additionally, the latest S-1 explicitly states that BlackRock will not participate in ETH staking, pursuant to Nasdaq’s May 22 19b-4 Second Amendment on behalf of BlackRock.
All other ETH ETF issuers have also removed the staking possibility from their applications.
