BlackRock has updated its Form S-1 regarding its ETH spot ETF. Is this a sign that the fund will finally debut on the stock exchange?
Is BlackRock preparing for an issue?
Recall that this month the SEC approved applications for the creation of ETH ETFs. This set included BlackRock documentation.
The problem is that officials agreed to establish ether ETFs, but did not stamp the S-1 applications. These are forms that are a ticket to introducing funds to stock exchanges. Now, however, we have the first signal that ETFs may soon be introduced to trading. On May 29, BlackRock updated its S-1 form regarding its iShares Ethereum Trust (ETHA).
It's a good sign
– said Bloomberg ETF analyst Eric Balchunas. He added that other issuers would probably join BlackRock soon.
He added that the actual launch of ETFs at the end of June is very realistic.
His editorial colleague, James Seyffart, is also optimistic. Another thing is that both men were previously very wrong as to whether the SEC would agree to the creation of ETH ETFs at all. They suggested that the applications would be rejected. It happened differently.
BlackRock's amended S-1 included information about the seed investor – the entity that allocates money to the fund so it can start trading. The filing also indicated that the ETF will be listed and traded under the ticker “ETHA.”
Impact on the ETH rate
Analysts say that the launch of ETH ETFs will cause their base asset, ether, to become more expensive, registering new ATH on the chart. Some speculate that Wall Street will use ETFs as a bet on the development of the Web3 market. In other words, investors will purchase ETH ETF units to have portfolio allocations to this relatively new technology.
Others, however, believe that initially it will not be colorful – or more precisely: there will be a lot of red. ETH may fall due to supply pressure, which may be caused by the Grayscale Ethereum Trust (ETHE), from which investors will draw capital. We saw the same scenario with BTC and Grayscale's BTC ETF.
