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Grayscale Investments and BlackRock Update Ethereum ETF Applications
Grayscale Investments and BlackRock have recently made significant updates to their spot Ethereum ETF applications, despite the Securities and Exchange Commission (SEC) delaying its decision on the matter in recent weeks and expectations leaning towards rejection.
Grayscale took a crucial step forward by filing an S-3 registration statement with the SEC on April 23. This filing marks the firm’s latest move towards the proposed conversion of its existing Grayscale Ethereum Trust into a spot exchange-traded fund (ETF). In addition to this filing, Grayscale also submitted an S-1 registration statement for a mini Ethereum ETF, mirroring its proposed mini Bitcoin ETF. However, the SEC has yet to approve either mini ETF.
On the other hand, Nasdaq amended BlackRock’s 19b-4 filing to include a proposed rule change that would allow the exchange to list and trade shares of BlackRock’s planned iShares Ethereum Trust. The amendment proposes cash-based creations and redemptions, aligning the proposed fund with competing Ethereum ETF applications and previously approved spot Bitcoin ETFs.
SEC Decision Expected in May
The SEC has delayed the deadlines for several Ethereum ETFs in recent weeks and is anticipated to make decisions on the applications simultaneously in May. However, the outlook for Ethereum ETF approvals is currently bleak. Bloomberg ETF analyst Eric Balchunas, who initially estimated a 70% chance of approval earlier in the year, has now shifted his prediction to a pessimistic 25% chance of approval.
Polymarket has reported an 11% chance that the SEC will approve an Ethereum ETF by May 31, shown as betting odds. Despite these challenging odds, both Grayscale and BlackRock are continuing to push forward with their ETF applications, demonstrating their commitment to launching these investment vehicles in the market.
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