BlackRock updates S-1 filing to further promote the approval of spot Ethereum ETF

Compiled by: Blockchain Knight

BlackRock amended its S-1 registration statement for its spot Ethereum ETF in a filing on May 29, marking a step toward approval.

The document was written on the basis of BlackRock's original registration statement filed in November 2023.

Bloomberg ETF analyst James Seyffart said the filing was a step toward launch after the SEC (U.S. Securities and Exchange Commission) approved the 19b-4 listing rule changes on May 23.

Seyffart reiterated that he believes the S-1 statement may be approved in the coming weeks, facilitating the launch of the spot Ethereum ETF, but he also admitted that "it would take several months to get approved under normal circumstances."

The S-1 filing fills in several placeholder fields, including details of seed funding.

According to the filing, the fund received $10 million in proceeds from the purchase of 400,000 shares of seed capital at $25 per share through BlackRock Financial Management.

iShares Delaware Trust sponsors can charge up to $500,000 in fees per year, and the latest filing does not calculate the sponsor fee calculated as a percentage.

The trust will issue and redeem shares in units of 40,000 shares, and the fund code is ETHA.

Wilmington Trust National Association will serve as the Delaware trustee, and Bank of New York Mellon will serve as the trust manager and cash custodian.

The new S-1 also reintroduces the possibility of in-kind creations and redemptions, which will allow authorized participants to trade crypto assets instead of cash.

The fund acknowledged that approval for in-kind trading is not guaranteed and the timing is uncertain. BlackRock's original S-1 statement mentioned the possibility of in-kind creations and redemptions in passing.

However, the revised notice of the 19b-4 filing filed by Nasdaq in April stated that authorized participants will rely entirely on cash when creating and redeeming fund shares.

The latest S-1 also explicitly states that BlackRock will not participate in the ETH private placement, which is consistent with the second 19b-4 amendment issued by Nasdaq on behalf of BlackRock on May 22.

Currently, all other Ethereum ETF issuers have also removed the possibility of spotting from their applications.