SEC Seeks Comments On Blackrock’s Ethereum ETF Ahead Of May Deadline

Updated: 24 April 2024

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The US Securities and Exchange Commission (SEC) is seeking comments on an amended filing for a spot Ethereum ETF (exchange-traded fund) by asset manager BlackRock.

BlackRock filed for the iShares Ethereum Trust in November last year. The SEC delayed its decision on the application in March, prompting BlackRock to file an amendment last week.

The regulator is now seeking comments on the amended filing that introduces changes in the creation and redemption of shares.

The U.S. SEC is seeking public comment on BlackRock’s proposed changes to its spot ETH ETF. Nasdaq submitted an amendment on April 19 that discussed the creation and redemption process of this ETF, without any further mention of staking. https://t.co/B9RSklTMn7

— Wu Blockchain (@WuBlockchain) April 24, 2024

Interested persons can submit comments on the SEC’s website within 21 days.

Chances of Approval Of BlackRock iShares Ethereum ETF Remain Low

The SEC is yet to approve any spot Ethereum ETFs. Despite the recent activity by BlackRock and the SEC, Bloomberg ETF analyst James Seyffart puts the odds for approval in May at just 25%.

our odds as of our last update were 25%https://t.co/r1jJZ4jmLj

— James Seyffart (@JSeyff) April 23, 2024

Standard Chartered Bank, which was previously optimistic that spot Ethereum ETFs will launch in May, has also changed its stance. The bank said that the lack of active dialogue between the SEC and the applicants made an approval on May 23 unlikely.

On Tuesday, the SEC delayed its decision on spot ETH ETF filings by Grayscale and Franklin Templeton to June 23 and June 11, respectively. The delayed decision comes as Grayscale filed to convert its Ethereum Trust into an Ethereum ETF.

🚨NEW filings from @Grayscale:

The asset manager has just filed its Form S-3 with the @SECGov, a registration statement for the conversion of its Ethereum Trust to a spot $ETH ETF. Unlike the other ETH ETF issuers, Grayscale does not have to file an S-1 because its Ethereum…

— Eleanor Terrett (@EleanorTerrett) April 23, 2024

Two US Senators have previously cautioned the SEC against approving more crypto ETFs because of their ”enormous risks.”