Ethereum ETF Applications by Grayscale and BlackRock: Latest Updates Amid SEC Delays

Grayscale Investments and BlackRock remain undeterred by SEC delays as they update their spot Ethereum ETF applications, signalling continued interest despite regulatory uncertainties.

Latest Developments in Grayscale and BlackRock’s Ethereum ETF Endeavors

Grayscale Investments took a significant step forward by filing an S-3 registration statement with the SEC on April 23, indicating progress in its bid to convert its Grayscale Ethereum Trust into a spot exchange-traded fund (ETF). This move underscores Grayscale’s commitment to navigating the regulatory landscape despite recent setbacks.

Additionally, Grayscale submitted an S-1 registration statement for a mini Ethereum ETF, mirroring its efforts to establish a mini Bitcoin ETF. However, both mini ETFs await SEC approval, highlighting the regulatory hurdles still facing such investment vehicles.

On the other hand, Nasdaq amended BlackRock’s 19b-4 filing, introducing a proposed rule change to list and trade shares of BlackRock’s iShares Ethereum Trust. Notably, this amendment includes a shift towards cash-based creation and redemptions, aligning the proposed fund with existing Ethereum ETF applications and approved spot Bitcoin ETFs.

SEC’s Impending Decision on Ethereum ETFs

While the SEC has postponed deadlines for several Ethereum ETFs in recent weeks, the industry anticipates a collective decision in May. However, sentiments surrounding Ethereum ETF approvals have waned, with Bloomberg ETF analyst Eric Balchunas revising his initial optimism to a more pessimistic outlook, citing a mere 25% chance of approval.

Polymarket, an online prediction market, reflects similarly bleak odds, estimating an 11% likelihood of the SEC approving an Ethereum ETF by May 31, underscoring the prevailing scepticism within the industry.

Also Read: Franklin Templeton’s Spot Ether ETF Decision Delayed  by SEC