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The Coin Rise 2025-05-21 22:09:18

SEC Acknowledges the Amendment Proposal For BlackRock Ethereum ETF

The United States Securities and Exchange Commission (SEC) has finally acknowledged an amendment in the spot Ethereum Exchange Traded Fund (ETF) filing submitted by BlackRock, a leading asset management firm. This marks a significant milestone for the firm and the broader cryptocurrency sector. In-cash Redemption Over In-kind Method For SEC ETF Approval BlackRock is not trying to submit a new spot ETH ETF application to the Commission. Rather, it is seeking to adjust the fund’s creation and redemption methods, which were launched in 2024. At inception, the BlackRock iShares Ethereum Trust (ETHA) was designed to accommodate in-kind redemption, but after going through the SEC’s desk, the firm was forced to choose the in-cash method instead. At the time, it did not look like BlackRock would have a chance of approval for the ETF if it did not make the suggested adjustments. One year after ETHA launched , precisely on May 10, it boldly filed for an amendment of the spot Ethereum ETF to allow an in-kind creation and redemption process. This coincides with the period when they discussed having Anchorage Digital as an additional Ethereum custodian . Benefits on In-kind Creation and Redemption of Ethereum ETF An in-kind approach allows authorized investors to exchange ETH for ETF shares during creation and redemption. These entities also get the exclusive advantage of sidestepping capital gains tax since they will not need to sell their ETH for cash. Cboe once proposed in-kind redemption for ARK 21Shares Bitcoin and Ethereum ETFs. In-kind creation and redemption in the Ethereum ETF have the potential to improve ETH price tracking while reducing trading fees. According to the document filed for the amendment, “This post-effective amendment No 1 to Form S-1 is being filed by 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.” What Next? The US SEC has now opened the BlackRock ETHA amendment proposal filing for public comments. The agency usually takes this action before deciding on an application. The latest move from the SEC generally suggests that the regulator is actively working on the filing, although this does not guarantee that an approval will end the process. The post SEC Acknowledges the Amendment Proposal For BlackRock Ethereum ETF appeared first on TheCoinrise.com .

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