Ethereum ETF Launch in June: BlackRock Filing Fuels Speculation
The wait for a U.S.-based exchange-traded fund (ETF) directly tied to Ethereum (ETH) might be nearing its end. Analysts are optimistic about a potential launch by late June, following a key move by investment giant BlackRock.
BlackRock Files Updated S-1
On May 29, BlackRock updated its Form S-1 with the Securities and Exchange Commission (SEC) for its proposed iShares Ethereum Trust (ETHA). This filing is a crucial step towards launching an ETF, and came just a week after the SEC approved BlackRock’s 19b-4 filing related to the product.
Analysts like Bloomberg ETF analyst Eric Balchunas view the update as a positive sign. He believes it could be followed by similar filings from other issuers, potentially leading to a launch by the end of June. However, Balchunas acknowledges a July 4th launch as a more realistic timeframe, with an earlier date being a “long shot.”
BlackRock and SEC Working Together
Another Bloomberg analyst, James Seyffart, sees BlackRock’s updated S-1 as evidence of collaboration between issuers and the SEC. This suggests progress towards approving spot Ethereum ETFs, which directly track the price of ETH.
The updated S-1 also sheds light on the seed capital investor for the ETHA fund. This is the initial financial backing needed to launch the ETF and begin trading. The filing reveals that a BlackRock affiliate committed $10 million to purchase 400,000 shares at a price of $25 each.
Hashdex Withdraws Spot ETF Application
Interestingly, the same day BlackRock updated its S-1, another applicant, Hashdex, withdrew its bid for a spot Ether ETF. This came just a day after the SEC initially approved applications from BlackRock and eight other issuers.
Analysts are divided on the potential impact of a spot Ethereum ETF on the price of ETH. Some believe it could lead to new highs, driven by increased interest from Wall Street investors betting on the growth of Web3, a decentralized internet concept.
Others speculate on potential price pressure due to the conversion of the Grayscale Ethereum Trust (ETHE) into a spot ETF. This shift could lead to significant outflows from ETHE, potentially exceeding $110 million daily, as the discount between its price and the underlying ETH narrows.
