Despite the recent weeks of delay and expected inclination to reject the application for a spot Ethereum ETF by the U.S. Securities and Exchange Commission (SEC), Grayscale and BlackRock have still updated their spot Ethereum ETF applications.
On April 23, Grayscale submitted an S-3 registration statement to the SEC, marking the latest development in Grayscale's intention to convert its existing Grayscale Ethereum Trust into a spot ETF.
Grayscale referred to the filing as "another key document," along with the 19b-4 form previously submitted to NYSE Arca.
Grayscale also submitted an S-1 registration statement for a mini Ethereum ETF, corresponding to its proposed mini BTC ETF. The SEC has not yet approved these two mini ETFs.
Meanwhile, Nasdaq has amended BlackRock's 19b-4 filing to include a proposed rule change, through which Nasdaq intends to list shares of BlackRock's iShares Ethereum Trust for trading.
The updated proposal suggests cash creation and redemption, as opposed to in-kind creation and redemption. This aligns the proposed fund with competing Ethereum ETF applications and previously approved spot BTC ETFs.
In recent weeks, the SEC has delayed the final deadlines for several Ethereum ETFs, with decisions expected to be made simultaneously in May.
Expectations for the approval of an Ethereum ETF are currently at an all-time low.
Bloomberg ETF analyst Eric Balchunas initially stated a 70% chance of approval earlier this year, but has now updated his forecast to a "very pessimistic 25%."
According to Polymarket, the likelihood of the SEC approving an Ethereum ETF by May 31 is only 11%.
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