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Highlights
- BlackRock files to amend its spot Ethereum ETF to sidestep cash use for creation and redemption.
- The move follows a meeting between BlackRock and the SEC Crypto Taskforce.
- Institutional interest in Ethereum has surged amid rising ETH prices.
BlackRock has filed for an amendment of its spot Ethereum ETF to allow an in-kind creation and redemption process. The filings come after a meeting with the US Securities and Exchange Commission’s (SEC) Crypto Task Force and renewed institutional interest in Ethereum.
BlackRock Pushes For In-Kind Creation And Redemption For Ethereum ETF
Fund manager BlackRock is seeking to amend key areas of the S-1 filing for its iShares Ethereum Trust ($ETHA). According to an X post by Bloomberg analyst James Seyffart, BlackRock’s latest filing with the SEC is an attempt to allow in-kind creation and redemption for the spot Ethereum ETF
If approved, the move will allow authorized participants to exchange ETH for ETF shares during creation and redemption. A key feature of BlackRock’s filing is the intention to sidestep the use of cash for the creation and redemption process.
“This post-effective amendment No 1 to Form S-1 is being filed bny the registrant to disclose that the Trust may allow for an in-kind creation and redemption process as an alternative to the Trust’s current cash creation and redemption process,” read the filing.
BlackRock’s ETF will also offer authorized participants the benefit of sidestepping capital gains tax since there is no need to sell ETH for cash. Furthermore, in-kind creation and redemption in the Ethereum ETF will improve ETH price tracking while reducing trading fees.
Per the filing, BlackRock is also pushing to incorporate by reference and insert information from its Annual Report in its registration statement. The filings follow BlackRock’s meeting with the SEC to discuss key topics revolving around staking tokenization and options on crypto ETPs.
Institutional Interest In Ethereum Spikes Amid Double-Digit ETH Rally
Barely hours after the Ethereum ETF amendment filings, BlackRock scooped up 7,976 ETH for around $18.9 million, reaffirming its faith in Ethereum. At the moment, the iShares Ethereum Trust holds over 1 million ETH with a total value of $2.9 billion, surpassed only by Grayscale’s Ethereum Trust.
Over the last 48 hours, London-based Abraxas Capital has moved 138,511 ETH from exchanges valued at $333 million. The recent accumulation trend comes on the heels of Ethereum whales showing mixed behaviour at the start of the ETH rally.
Ethereum price currently trades at $2,464, garnering 6.52% over the last 24 hours in a strong showing by the bull. Weekly charts indicate an even stronger price performance with ETH gaining 34.97% and nearly 70% over a month.
Despite the recent gains, a CoinGape market analysis shows that Ethereum can rise by 200% after Brazil’s B3 stock exchange launched ETH and SOL futures. Other Ethereum ETF issuers are loading up their ETH holdings to reflect rising investors’ interest in the largest altcoin.
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