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BlackRock’s S-1 Filing Update Fuels Hopes for July Launch of Spot Ethereum ETFs

2 mins
Updated by Lynn Wang
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In Brief

  • BlackRock updates S-1 filing, fueling expectations for spot Ethereum ETFs.
  • Industry experts predict July launch for Ethereum ETFs after filing updates.
  • Experts also see this move as regulatory progress for spot Ethereum ETFs.
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BlackRock, a prominent asset management firm, has recently updated its S-1 filing with the US Securities and Exchange Commission (SEC). This indicates significant progress toward launching a spot Ethereum (ETH) exchange-traded fund (ETF).

The crypto community and experts see this update as a critical step, aligning with similar moves by other asset managers, such as VanEck.

Key Industry Perspectives on Spot Ethereum ETF Launch Timelines

In the updated document, BlackRock explicitly states that the Trust will not engage in any “Staking Activities,” which involve using its ETH for Ethereum proof-of-stake (PoS) validation or generating income from such actions. As a result, the Trust will not receive any staking rewards or earnings from these activities.

“Foregoing potential returns from Staking Activities could cause an investment in the Shares to deviate from that which would have been obtained by purchasing and holding ether directly by virtue of giving up staking as a source of return when an investor holds the Shares,” the updated document reads.

Read more: Ethereum ETF Explained: What It Is and How It Works

This stance mirrors VanEck’s recent S-1 filing update. BeInCrypto previously reported that VanEck clarified none of its affiliated parties would participate in staking activities. These industry leaders’ proactive approach suggests a coordinated effort to meet SEC requirements and advance the launch of Ethereum ETFs.

In a separate development, the Depository Trust & Clearing Corporation (DTCC) has also listed Fidelity’s spot Ethereum ETF on its website under the ticker FETH. This listing by DTCC adds another layer of legitimacy and anticipation for the forthcoming offerings in the crypto ETF space. However, despite these promising signs, the official launch remains contingent on the SEC’s approval of the S-1 forms.

Nonetheless, industry experts have shared their insights on the potential timelines for these launches. James Seyffart, an ETF analyst at Bloomberg, expressed optimism, stating that the SEC and issuers are actively working towards the launch of spot Ethereum ETFs. He noted that the current engagement on the S-1 filings suggests a launch could occur within weeks.

“We’re already one week in. The norm is months though,” Seyffart added.

Eric Balchunas, another ETF analyst at Bloomberg, reinforced this optimism. He suggested that while an end-of-June launch is possible, he maintains a more conservative estimate of July 4. Balchunas also addressed the possibility of an accelerated approval but deemed it unlikely unless there is a significant political impetus to expedite the process.

“Good sign. Probably [we will] see the rest roll in soon. Then, probably one more round of fine-tuning comments from [the SEC] Staff,” Balchunas suggested.

Read more: How to Invest in Ethereum ETFs?

As these developments unfold, the financial and crypto communities remain watchful, anticipating the potential impact of these ETFs on the market. The coordinated efforts of major asset managers and the SEC’s engagement indicate a pivotal moment for Ethereum investment vehicles.

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Lynn Wang
Lynn Wang is a seasoned journalist and content creator with over eight years of experience in digital marketing and cryptocurrency journalism. Her expertise lies in SEO strategy, blockchain technology, and Web3, where she has consistently delivered impactful content initiatives and engaged audiences effectively. Since January 2022, Lynn has been at the forefront of content and community efforts for BeInCrypto Indonesia. Under her leadership, the platform has witnessed remarkable growth,...