Grayscale and BlackRock Update Ethereum ETF Filings Amid SEC Delays

Grayscale Investments and BlackRock have recently amended their spot Ethereum ETF filings, with the former having drawn a delay in a decision by the SEC just weeks ago, and expectations at the time still lean on rejection.

Grayscale filed the S-3 registration statement with the SEC on April 23. The document represents the latest stride by the company toward transforming its existing Grayscale Ethereum Trust to become an ETF trading on a spot exchange.

Grayscale called the filing "another important filing," together with NYSE Arara's Form 19b-4 filing earlier in the day.

Grayscale has also filed an S-1 registration statement for a mini Ethereum ETF, a counterpart to its proposed mini Bitcoin ETF. Neither has received SEC approval.

Separately, Nasdaq revised BlackRock's 19b-4 filing to reflect a proposed rule change under which the exchange listed and traded shares of BlackRock's proposed iShares Ethereum Trust.

This update proposes a shift to cash-based—both in creation and redemptions—from the current in-kind creation and redemptions. It is in line with the spot Bitcoin ETFs already approved by its competitor.

The SEC has pushed back deadlines on a number of Ethereum ETFs in recent weeks and is expected to decide on the applications at the same time in May.

Expectations around Ethereum ETF approvals are near rock bottom. At the beginning of the year, Bloomberg ETF analyst Eric Balchunas said the odds of approval stood at 70% but updated his prediction to a "very pessimistic 25%" chance of a green light. Polymarket is putting an 11% probability on the SEC greenlighting an Ethereum ETF before May 31, represented as betting odds.