Wall Street Bombshell! BlackRock Files Key Documents for Ethereum Spot ETF Analysts: Could Launch Before End of June

Wall Street asset management giant BlackRock, which manages $10 trillion, has submitted an updated S-1 document for an Ethereum spot ETF. Analysts see this as a positive signal, indicating that the issuer and the U.S. Securities and Exchange Commission (SEC) are reaching a consensus. The market predicts that this ETF could launch before the end of June.

On Wednesday, May 29, BlackRock updated the S-1 form for its iShares Ethereum Trust (ETHA) with the SEC. Previously, the SEC had approved its 19B-4 document. For the ETF to start trading, the market awaits the SEC's formal approval of the S-1 form.

"Good sign, we might see others (institutions) soon," tweeted Bloomberg ETF analyst Eric Balchunas on Wednesday.

He added that the SEC might make another round of minor adjustments, but launching by the end of June is a reasonable possibility. However, he believes the likelihood of approval will be around July 4, adding that earlier approval is "unlikely."

Another Bloomberg ETF analyst, James Seyffart, stated that BlackRock's updated S-1 document "is almost certainly what we were expecting," as it indicates "the issuer and the SEC are working towards launching an Ethereum spot ETF."

BlackRock’s revised S-1 document provides information about its seed capital investor, an entity that allocates funds to the fund to initiate trading.

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The document states that on May 21, this investor (a BlackRock affiliate) agreed to purchase $10,000,000 worth of shares on May 21, 2024, and to receive 400,000 shares at a price of $25.00 per share on the same date.

The document also notes that the ETF will be listed and traded under the ticker symbol ETHA.

Following the news, Bitcoin, Ethereum, and other cryptocurrencies saw an uptick.

As of Thursday morning in the Asian market, Bitcoin briefly rebounded, surpassing the $68,000 mark. Ethereum saw a slight rebound but remained at $3,782, still within a bearish zone.

On the same day, another document revealed that Hashdex withdrew its transaction the day after the SEC jointly approved the trading of an Ethereum spot ETF with BlackRock and seven other issuers.

A source familiar with the application told CoinTelegraph that Hashdex no longer intends to proceed with a single-asset Ethereum ETF.

Analysts say the ETF will see Ethereum reach new highs, as some speculate that Wall Street will use it to bet on Web3 growth.

Others speculate that Ethereum may face price pressure as the Grayscale Ethereum Trust (ETHE) might experience an average daily outflow of $110 million in the weeks following conversion, and its discount rate may also narrow.