Ethereum (ETH) ETF Launch Inches Closer as BlackRock Updates Filing

The launch of a U.S. spot Ethereum ETF (exchange-traded fund) is edging closer to reality, with BlackRock, the world’s largest asset manager, updating its registration statement with the SEC.

BlackRock Files Amended S-1 for Ethereum ETF

On May 29th, BlackRock submitted an updated Form S-1 for its iShares Ethereum Trust (ETHA) with the Securities and Exchange Commission (SEC). This follows the SEC’s approval of BlackRock’s 19b-4 filing, a crucial step in the ETF launch process.

The amended S-1 filing discloses a BlackRock affiliate as the seed capital investor for the ETF, committing $10 million and acquiring 400,000 shares at $25 each.

Analyst Optimistic on Launch Timeline

Bloomberg ETF analyst Eric Balchunas believes this update signals “engagement” between issuers and the SEC, suggesting a potential launch by late June. However, a more conservative estimate places approval closer to July 4th.

Hashdex Cancels Spot Ether ETF Bid

Interestingly, Hashdex, another firm with an approved spot Ether ETF, withdrew its application just a day after the SEC’s green light. Reasons for this withdrawal haven’t been officially disclosed.

Potential Impact on Ethereum Price

Analysts are divided on the impact of Ethereum ETFs. Some predict a surge in ETH price due to increased investor access and potential interest from Wall Street in Web3.

Others worry about potential price pressure as investors migrate from the Grayscale Ethereum Trust (ETHE) to the ETF, leading to outflows from ETHE.

Ethereum Price Experiences Short-Term Dip

Despite the positive ETF news, Ethereum’s price is currently experiencing a correction, falling below the $3,800 support level. Technical indicators suggest the possibility of a further dip towards $3,720, but there’s also potential for a rebound if resistance at $3,800 is broken.