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BlackRock Amends Ethereum ETF Application; Bloomberg’s Balchunas Sees ETF Going Live By June

May 29, 2024
  • Bloomberg analyst Eric Balchunas called the updated S-1 a “good sign,” adding that a launch by the end of June was “a legit possibility.”
  • On Tuesday, BlackRock became the largest publicly traded bitcoin fund, flipping Grayscale.
As a researcher with a background in the financial industry and experience in following the cryptocurrency market closely, I find BlackRock’s updated S-1 filing for its proposed spot ETH exchange-traded fund (ETF) to be an exciting development. The revelation that a Seed Capital Investor, an affiliate of the Sponsor, had purchased the initial shares for the proposed product is a good sign, indicating confidence in the potential success of the ETF.BlackRock updated its S-1 filing for the anticipated ETH ETF, disclosing additional details about the product following its approval for trading in the United States.

An “Angel Investor” bought the first round of shares for the new product, as indicated by the disclosed documents.

On May 21, 2024, the Seed Capital Investor, a subsidiary of the Sponsor under certain conditions, acquired 400,000 shares for $25.00 apiece from the Seed Creation Baskets as indicated in the S-1 filing. The Trust’s net asset value stood at $10 million.

Providing this information in a clear and conversational way: With regulatory consent, investors can exchange the ETF’s assets for cash or ethers. The upcoming iShares Ethereum Trust, symbolized as “ETHA,” will be tradable on stock exchanges once listed.

As a researcher examining the latest developments regarding the anticipated IPO, I consider Eric Balchunas’s characterization of the revised S-1 filing as a positive indication. His belief that a launch before the end of June is plausible aligns with my own analysis based on current information.

A new version of the S-1 filing emerges approximately a week following the SEC’s green light for several ether ETFs to be listed in the United States, fueling optimistic expectations within the wider cryptocurrency sector.

BlackRock’s Bitcoin ETF has been a triumph for the firm, surpassing Grayscale on Tuesday to hold the title of the largest publicly traded Bitcoin investment with approximately $20 billion in assets.

Since its launch in January, IBIT has attracted over $16 billion in investments, according to reports, with significant contributions coming from prominent state pension funds.

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2024-05-30 10:01