SEC postpones Ethereum ETF approval, Grayscale and BlackRock are still updating their applications

Source: Blockchain Knight

Grayscale and BlackRock have updated their spot Ethereum ETF applications despite the SEC's delay in recent weeks and expectations of a rejection.

Grayscale filed an S-3 registration statement with the SEC on April 23,which marks the latest development in Grayscale's plan to convert the existing Grayscale Ethereum Trust into a spot ETF.

Grayscale called the filing "another key filing" along with NYSE Arca's earlier Form 19b-4 filing.

Grayscale also filed an S-1 registration statement for a mini Ethereum ETF that corresponds to its proposed mini BTC ETF.The SEC has not yet approved either mini ETF.

Meanwhile, Nasdaq amended BlackRock's 19b-4 filing to include a proposed rule change through which Nasdaq intends to list and trade shares of BlackRock's planned iShares Ethereum Trust.

The update proposes creation and redemption in cash rather than in-kind. This brings the proposed fund in line with competing Ethereum ETF applications as well as previously approved spot BTC ETFs.

The SEC has pushed back the deadlines for several Ethereum ETFs in recent weeks, with decisions on those applications expected to be made simultaneously in May.

Expectations for Ethereum ETF approval are at an all-time low.

Bloomberg ETF analyst Eric Balchunas initially said there was a 70% chance of approval earlier this year, but has now updated his forecast to a “very pessimistic 25%”.

Polymarket reports that there is just an 11% chance the SEC will approve an Ethereum ETF by May 31.