BlackRock has updated its filings with the U.S. Securities and Exchange Commission (SEC) for both Ethereum and Bitcoin ETFs, signaling significant moves in the regulatory landscape of digital assets.
In a major development, BlackRock filed an amended S-1 statement for its proposed spot Ethereum ETF, introducing provisions for in-kind creation and redemption of ETF shares. This means authorized participants could create or redeem ETF shares by exchanging actual Ethereum, similar to mechanisms used in spot Bitcoin ETFs. The change is expected to offer greater tax efficiency, lower operational costs, and reduced market impact—aligning the product with established practices favored by the SEC. Market analysts, including James Seyffart and Eric Balchunas, view this as a positive step that raises the likelihood of SEC approval for a spot Ethereum ETF, which could significantly increase institutional access and liquidity in the Ethereum ecosystem.
Separately, BlackRock updated its S-1 registration for its iShares Bitcoin Trust (IBIT), adding new disclosures about the theoretical risk of quantum computing to Bitcoin's cryptographic security. The filing notes that, though quantum computing is not yet an imminent threat, future advances could undermine the encryption protecting Bitcoin holdings. Such risk disclosures are standard practice in ETF filings and do not reflect an immediate concern. IBIT remains the largest spot Bitcoin ETF, with strong consecutive inflows exceeding $5.1 billion.
Together, these filings underscore BlackRock's proactive approach in both highlighting potential technological risks and advancing operational efficiency for crypto-based ETFs, reflecting growing maturity and integration between traditional finance and the crypto sector.
