BlackRock and Grayscale revamp Ethereum ETF filings after SEC delay

The United States Securities and Exchange Commission’s (SEC) further delay in approving Grayscale’s proposed spot Ethereum (ETH) ETF has not cooled the company’s momentum; on the contrary, it increased his desire to launch the fund.

Reflecting this impulse, Grayscale filed Form S-3 with the SEC, seeking to register shares of the ETH ETF under the Securities Act of 1933. This form allows companies, after extensive reporting to the SEC, to incorporate by reference much of the necessary information in your registration statement, simplifying and speeding up the process.

Additionally, the company also submitted Form S-1, indicating a split of its proposed ETH fund to create a new “mini” version of its ETF, with the ticker ETH.

According to Craig Salm, chief legal officer at Grayscale, the approval of this ETF would be “remarkably positive for existing shareholders.” After all, they will be able to have exposure to Ether with the added benefit of a lower fee.

The intention to issue two ETFs based on the Ethereum cryptocurrency, according to Salm, aims to create a complete set of financial products for various investors.

Ethereum ETFs

This plan involves splitting a portion of the investment value between the proposed existing ETH ETF fund and the new fund, replicating the previously proposed Bitcoin “mini” ETF.

In addition to Grayscale, giant BlackRock also submitted a Form 19b-4 related to its proposed Ether ETF to the SEC. The primary purpose of this form is to keep the SEC informed about rule changes proposed by U.S. Self-Regulatory Organizations (SRO).

James Seyffart, an ETF expert at Bloomberg Intelligence, calls BlackRock’s amendment “interesting,” although he doesn’t see anything that would change the low probability of approval. This demonstrates that broadcasters have not given up the fight.

BlackRock submitted its application for ETF authorization last November. Larry Fink, CEO of BlackRock, expressed optimism about its approval in March this year – which did not happen.

The deadline for the SEC to release its verdict on VanEck’s proposed Ether ETF is May 23, keeping the financial community in suspense. Companies remain optimistic and determined, hoping for a positive response from the SEC.