Grayscale Investments and BlackRock have both made updates to their Ethereum ETF applications, despite the SEC delaying its decision and indications pointing towards potential rejection.
Grayscale submitted an S-3 registration statement to the SEC on April 23, marking another step in its bid to convert its Grayscale Ethereum Trust into a spot exchange-traded fund (ETF). This filing, alongside NYSE Arca’s earlier Form 19b-4 filing, is considered significant by Grayscale.
Additionally, Grayscale submitted an S-1 registration statement for a mini Ethereum ETF, similar to its proposed mini Bitcoin ETF, which is also pending SEC approval.
BlackRock’s Nasdaq filing was amended to include a proposed rule change aiming to list and trade shares of its iShares Ethereum Trust. The update suggests a shift to cash-based creation and redemptions, aligning with other Ethereum ETF applications and previously approved spot Bitcoin ETFs.
The SEC has postponed deadlines for several Ethereum ETFs recently and is expected to make decisions on all applications simultaneously in May. However, hopes for Ethereum ETF approvals are low, with Bloomberg ETF analyst Eric Balchunas revising his prediction from a 70% chance to a “very pessimistic 25%.”
According to Polymarket, there’s only an 11% chance that the SEC will approve an Ethereum ETF by May 31, represented as betting odds.