BlackRock updated its S-1 registration statement for its spot Ethereum ETF in a filing on May 29, signaling progress towards approval.

The filing expands upon BlackRock’s original registration statement, initially submitted in November 2023.

According to Bloomberg ETF analyst James Seyffart, this filing represents a significant step toward the ETF's launch following the SEC's approval of 19b-4 listing rule changes on May 23. Seyffart commented:

“This is likely the engagement we anticipated…”

He expressed confidence that approval of the S-1 statements could occur in the coming weeks, potentially paving the way for the launch of spot Ethereum ETFs, although he acknowledged that the typical timeframe is longer.

Key details filled

The updated S-1 filing completes several placeholder fields, including information on seed funding.

As disclosed in the filing, the fund raised $10 million through seed capital, with BlackRock Financial Management purchasing 400,000 shares at $25 each.

The sponsor, iShares Delaware Trust Sponsor, could earn up to $500,000 in annual fees, with no specific percentage-based sponsor fee calculated in the latest filing.

The ETF will issue and redeem shares in blocks of 40,000, and its ticker symbol is ETHA.

Trustee and administrator roles

Wilmington Trust, National Association will serve as the Delaware trustee, while Bank of New York Mellon will act as the trust administrator and cash custodian.

Consideration of in-kind redemptions

The amended S-1 also reintroduces the potential for in-kind creations and redemptions, allowing authorized participants to transact in cryptocurrencies rather than cash. However, it notes that approval for such transactions is uncertain and timing is indeterminate.

Regarding ETH staking, the latest filing explicitly states that BlackRock will not engage in this activity, aligning with Nasdaq’s amendment on May 22.

Other Ethereum ETF issuers have also removed staking options from their applications, following Nasdaq’s directive.