SEC Delays Ethereum ETF Approval, Grayscale and BlackRock Still Updating Applications

Despite recent delays by the U.S. Securities and Exchange Commission (SEC) on applications for spot Ethereum ETFs, with a leaning toward rejection, both Grayscale and BlackRock have still been updating their spot Ethereum ETF applications.

On April 23rd, Grayscale submitted an S-3 registration statement to the SEC, marking the latest development as Grayscale aims to convert its existing Grayscale Ethereum Trust into a spot ETF.

Grayscale referred to this filing as another “key document,” alongside the 19b-4 form previously submitted to NYSE Arca.

Additionally, Grayscale filed an S-1 registration statement for a mini Ethereum ETF, corresponding to its proposed mini BTC ETF. The SEC has yet to approve both of these mini ETFs.

Meanwhile, Nasdaq amended BlackRock’s 19b-4 filing, including a proposed rule change to list shares of BlackRock’s planned iShares Ethereum Trust for trading.

The update proposes for cash creation and redemption instead of in-kind creation and redemption, aligning the proposed fund with competing Ethereum ETF applications and previously approved spot BTC ETFs.

In recent weeks, the SEC has postponed deadlines for several Ethereum ETFs, with decisions expected simultaneously in May.

Expectations for Ethereum ETF approval are at an all-time low.

Bloomberg ETF analyst Eric Balchunas initially stated a 70% likelihood of approval earlier this year, but has now revised his forecast to a “very pessimistic 25%.”

According to Polymarket, the chance of the SEC approving an Ethereum ETF before May 31st is only 11%.