- Spot Ethereum ETF Structure
- Regulatory Approval Timeline
- ETHA’s Growing Market Presence
On August 6, Nasdaq and BlackRock submitted a proposal to the US Securities and Exchange Commission (SEC) to list and trade options for BlackRock's spot Ethereum Exchange-Traded Fund (ETF).
Spot Ethereum ETF Structure
According to the filing, BlackRock's proposed iShares Ethereum Trust will be exclusively backed by Ethereum (ETH), which Coinbase will custody. The Bank of New York Mellon will manage the cash assets. Notably, the trust will avoid engaging in Ethereum staking to generate additional income. The primary aim of this proposal is to enhance the range of investment tools available for Ethereum, making it more accessible to traditional investors. While these shares do not provide direct ownership of ETH, they offer exposure to Ethereum through public securities markets.
Regulatory Approval Timeline
Bloomberg ETF analyst James Seyffart noted that the SEC has a 21-day window to comment on the proposal. However, the final decision is expected around April 9, 2025. Beyond the SEC, approval is also required from the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC).
ETHA’s Growing Market Presence
Since the launch of spot Ethereum ETFs in the US on July 23, BlackRock’s Ethereum ETF, ETHA, has seen its market dominance rise. In terms of assets under management (AUM), ETHA's share of the market has increased from 3% to 9%, according to DefiLlama. Despite this growth, Grayscale's Ethereum Trust, now converted into an ETF (ETHE), maintains a significant lead with an AUM of $4.77 billion, nearly nine times larger than ETHA.
The proposal to list options for BlackRock's spot Ethereum ETF represents a significant step in expanding crypto investment options for traditional investors. The final decision on this proposal is expected in 2025.
