The SEC solicits feedback on BlackRock’s revised proposal for a spot Ethereum ETF

Crypto News– The U.S. Securities and Exchange Commission (SEC) is reaching out to the public for feedback regarding the modifications made to BlackRock’s proposed spot Ethereum exchange-traded fund (ETF).

The SEC solicits feedback on BlackRock’s revised proposal for a spot Ethereum ETF

BlackRock, the world’s largest asset manager, is among several entities competing for approval of a spot Ethereum ETF. However, recent optimism about receiving SEC approval within the next month has waned. BlackRock initially filed for its spot Ethereum ETF in November 2023 under the name iShares Ethereum Trust. The fund aims to track the performance of ether’s price.

In January, the SEC postponed its decision on BlackRock’s spot Ethereum ETF. Subsequently, on April 19, Nasdaq submitted an amendment to the proposal.

The Commission is issuing this notice to seek comments on the proposed rule change, as revised by Amendment No. 1, from interested parties, stated the SEC in a filing released on Tuesday.

Comments will be accessible on the SEC’s website and must be submitted within 21 days, according to the agency’s announcement.

The details

In the updated submission, the exchange outlined changes to the creation and redemption process of the ETF. It stated, Baskets are only created or redeemed in exchange for a cash amount determined by the Trustee on each business day when Nasdaq is open for regular trading. This contrasts with the initial filing made in November, which indicated that the process would involve ether.

The debate between employing a cash redemption model versus an in-kind model garnered significant attention during meetings between issuers and the SEC last year regarding spot bitcoin ETFs. Despite the scrutiny, these products eventually received approval from the agency in January.

BlackRock’s latest amendment does not mention staking. However, other companies, including Fidelity and Grayscale, have revised their spot Ethereum applications to incorporate staking provisions. Grayscale also proposed a creation and redemption process that involves cash.