Grayscale Investments and BlackRock have updated their Spot Ethereum ETF applications even though the SEC has delayed a decision on the matter in recent weeks and expectations are trending towards a rejection.
Grayscale filed its S-3 registration statement with the SEC on April 23. The filing marks the latest step toward a proposal to convert the company's existing Grayscale Ethereum Trust into a Spot Trading ETF.
Grayscale called the filing “another important filing,” along with NYSE Arca's previous Form 19b-4 filing.
Grayscale has also filed an S-1 registration statement for a Mini Ethereum ETF, a counterpart to the proposed Mini Bitcoin ETF. The SEC has not yet approved the Mini ETF.
Meanwhile, Nasdaq has amended BlackRock's 19b-4 filing to include a proposed rule change through which the exchange intends to list and trade shares of the iShares Ethereum Trust under BlackRock's plan .
The update recommends cash-based generation and redemption instead of in-kind generation and redemption. This puts the proposed fund in line with competing Ethereum ETF registrations and previously approved Spot Bitcoin ETFs.
Decision in May
The SEC has issued deadlines for several Ethereum ETFs in recent weeks and is expected to decide on the concurrent applications in May.
Expectations surrounding Ethereum ETF approval are at an All-Time-Low. Bloomberg ETF analyst Eric Balchunas, who initially said the odds of approval were 70% at the start of the year, updated his forecast to a “very pessimistic 25% chance of approval.”
Polymarket reports an 11% chance that the SEC will approve an Ethereum ETF by May 31, expressed as betting odds.
General Bitcoin News.
