BlackRock’s spot Ethereum ETF, now listed on the DTCC as $ETHA, follows SEC approval alongside seven other Ethereum ETFs, though trading awaits further SEC clearance of S-1 filings.
BlackRock’s ETH ETF Listed As $ETHA
BlackRock's spot Ethereum ETF has been officially listed on the Depository Trust and Clearing Corporation (DTCC) under the ticker symbol $ETHA. This development follows the approval by the US Securities and Exchange Commission (SEC) of eight spot Ethereum exchange-traded funds (ETFs).
SEC Approval and Market Impact
The SEC’s green light includes ETFs from notable firms such as VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest & 21Shares, Invesco & Galaxy, and BlackRock’s iShares Ethereum Trust. These ETFs are slated for listing on major exchanges like Nasdaq, NYSE Arca, and the Cboe BZX Exchange. The approval of these ETFs is expected to boost Ethereum's market value significantly. Bernstein, a billion-dollar asset manager, predicts that the approvals could propel Ethereum to a new all-time high of $6,600.
Pending S-1 Filings
Despite the approval of the 19b-4 forms associated with these ETFs, trading is on hold until the SEC approves each ETF’s S-1 filing. This approval process varies in duration, with estimates ranging from a few weeks to several months.
Bloomberg ETF analyst James Seyffart commented,
“This does not mean they will begin trading tomorrow. This is just 19b-4 approval. Also needs to be an approval on the S-1 documents, which is going to take time. We’re expecting it to take a couple weeks, but could take longer.”
Seyffart suggests that the SEC’s review of the S-1 filings could take up to five months.
Industry Reactions
In the weeks leading up to the approval, there were concerns about a potential rejection of Spot Ethereum ETFs, especially as Ethereum's price struggled to maintain support at $3,000. However, the SEC’s urgent request for issuers to update their 19b-4 filings indicated a turnaround. BlackRock promptly responded, which sparked speculation about its influence on the SEC’s decision, especially given BlackRock’s historical success with ETF approvals.
BlackRock Maintains ETF Approval Record
BlackRock has been proactive in updating its application and aligning its Nasdaq amendment to propose cash-based creations and redemptions, similar to other Ethereum ETF applications and previously approved Bitcoin ETFs. This alignment is seen as a strategic move to ensure compliance and smooth approval from the SEC.
BlackRock, the world's largest asset manager, boasts a strong track record with the SEC, highlighting its adeptness at navigating regulatory hurdles and maintaining a consistent approval streak in its ETF applications.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
