BlackRock's Ethereum ETF Amendment

BlackRock has filed an amendment to its spot Ethereum ETF application with the SEC. This significant change allows for in-kind creation and redemption of ETF shares, a crucial step for the ETF's success. This follows a meeting between BlackRock and the SEC's Crypto Task Force, signaling a potential shift in regulatory approach towards Ethereum ETFs.

In-Kind Creation and Redemption: A Key Amendment

The amendment to the iShares Ethereum Trust ($ETHA) S-1 filing focuses on allowing authorized participants to exchange ETH for ETF shares, and vice-versa, without the need for cash transactions. This eliminates capital gains taxes for participants and enhances price tracking accuracy, minimizing trading fees.

"This post-effective amendment… discloses 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," states the filing.

BlackRock also included information from its Annual Report in the amended registration statement.

Increased Institutional Interest in Ethereum

Following the amendment, BlackRock purchased 7,976 ETH (approximately $18.9 million), further demonstrating its confidence in Ethereum. The iShares Ethereum Trust now holds over 1 million ETH, valued at roughly $2.9 billion, second only to Grayscale's Ethereum Trust.

Abraxas Capital also moved 138,511 ETH ($333 million) off exchanges, reflecting a broader trend of institutional accumulation amidst a recent 34.97% weekly ETH price increase (70% monthly increase). Ethereum is currently trading at $2,464.

Market analysis suggests potential for further substantial growth. The launch of ETH and SOL futures on Brazil's B3 stock exchange indicates growing global interest in the asset.

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