KEY POINTS
On May 29, BlackRock updated the Form S-1 pertaining to the iShares Ethereum Trust (ETHA) filed with the Securities and Exchange Commission (SEC).
This amendment came on the heels of the regulatory body’s sanction of the 19b-4 filing, both of which are critical milestones preceding the start of exchange-traded fund (ETF) trading.
BlackRock Updated S-1’s Details
In the updated S-1 filing, BlackRock disclosed details about its initial capital contributor, the entity responsible for providing the primary funding to kickstart the fund’s trading operations.
According to the document, on May 21, an associated company of BlackRock pledged to acquire shares valued at $10 million and obtained 400,000 shares at a unit price of $25.00 on that day.
Analyst Eric Balchunas Views
In a post on X (Twitter) dated May 29, Eric Balchunas, an ETF analyst, predicted further modifications in response to feedback from the SEC.
Balchunas maintains his projection for an approval date near July 4, indicating that the chances of an earlier authorization are slim.
Impact of Ether ETFs
Market observers predict that the approval of Ether ETFs might elevate ETH to new peaks, with some analysts proposing that it could be seen by Wall Street as a bet on the growth of Web3.
On the flip side, there’s conjecture that ETH could face a decline in its price, particularly if the Grayscale Ethereum Trust (ETHE) experiences an average daily withdrawal of around $110 million over several weeks after its conversion, leading to a reduced discount.
