BlackRock, a $10 trillion asset manager, has filed its amended Form S-1 for its spot Ethereum exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC).
The amended filing brings the launch date for the Ethereum ETFs closer. Last week, the US Securities regulator approved the iShares Ethereum Trust and several other Ether ETFs.
According to analysts, the updated filing shows that the issuers are becoming more engaged with the regulator. The move indicates that the launch could be near.
Ethereum ETFs To Launch In Late June
Bloomberg ETF analyst Eric Balchunas believes that filing the S-1 form by BlackRock was a “good sign, ” adding that the other applicants would file their amended forms in due course. Therefore, these ETFs would launch towards the end of June or by July 4.
Balchunas further noted that some data, such as fees, were missing from the updated filing, an indicator that the products would not launch any time soon.
“Unknown [though] is if the Staff has been [told] to hurry this up. I doubt it since the political goal of [Democrats] not appearing anti-crypto has already been achieved by simply not rejecting them. No real reason to rush,” Balchunas noted.
The proposed BlackRock Ether ETF will trade under the ticker ETHA. According to the asset management firm, none of the Ethereum used under this fund will go toward staking activities.
As such, the returns investors will get from buying into this ETF product will differ from what they would have received if they purchased and held ETH directly.
Balchunas also believes that despite the much talk about Ethereum ETFs, these products were less likely to flippen Bitcoin. He noted that Ethereum could not overtake Bitcoin in the ETF market like silver and gold.
According to the analyst, Ethereum ETFs will likely acquire a 20% share of the Bitcoin ETF market.
BlackRock Becomes the Largest Bitcoin Fund
BlackRock is making considerable strides in the crypto ETF space. The asset manager has surpassed Grayscale to become the most prominent Bitcoin fund globally. This event demonstrates Wall Street’s growing dominance in the crypto industry.
The BlackRock IBIT ETF holds 288,670 BTC, worth nearly $20 billion. The valuation follows a gradual rise in the total assets held by the ETF. IBIT has been adding around $145 million worth of Bitcoin daily.
The growth of BlackRock’s IBIT is iconic, as IBIT has become the first ETF to attain a $20 billion valuation in only 137 days. IBIT is amassing popularity because of the low fees charged by BlackRock and high liquidity.
Despite BlackRock’s success, not all Wall Street is open to Bitcoin. Vanguard, another leading asset management firm, remains hesitant to endorse crypto ETFs.
According to Balchunas, Vanguard will not list spot Ether ETFs, just like it steered clear of Bitcoin ETFs. The firm believes crypto fails to align with its “well-balanced, long-term portfolio.”
