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BlackRock amended the S-1 registration statement for its ethereum spot ETF in a May 29 filing, marking a step toward approval.
The filing is based on BlackRock's original registration statement, which was initially filed in November 2023.
Bloomberg ETF analyst James Seyffart called the filing a step toward launching after the SEC approved changes to 19b-4 listing rules on May 23.
He said:
“This is almost certainly the compromise we were looking for…”
Seyffart reaffirmed his belief that S-1 filings could gain approval in the coming weeks, leading to timely ethereum ETF launches, but admitted that “months are the norm.”
Placeholder data completed
The S-1 filing fills out several placeholder fields, including details about initial financing.
According to the filing, the fund has generated $10 million in income through an initial equity purchase by BlackRock Financial Management of 400,000 shares at $25 per share.
The sponsor, iShares Delaware Trust Sponsor, can charge up to $500,000 in fees per year. The latest filing does not calculate a percentage-based sponsor fee.
The trust will issue and redeem shares only in blocks of 40,000. The fund symbol is ETHA.
Wilmington Trust, National Association, will serve as Delaware trustee. Bank of New York Mellon will act as trustee of the trust and custodian of the cash.
Refunds in kind are considered
The new S-1 also reintroduces the possibility of in-kind creation and redemption, which would allow cryptocurrency transactions instead of cash between authorized participants.
You acknowledge that approval of in-kind transactions is not guaranteed and the timing is uncertain.
BlackRock's original S-1 filing mentioned in passing the possibility of in-kind creations and exchanges. However, a notice of amendment to Nasdaq's 19b-4 filing in April said authorized participants would rely solely on cash when creating and redeeming shares in the fund.
The latest S-1 also explicitly states that BlackRock will not engage in eth staking, aligning with Nasdaq's May 22 second amendment 19b-4 on behalf of BlackRock.
All other eth ETF issuers have also removed staking from their apps.