US SEC Acknowledges BlackRock's Ethereum ETF Amendment Filings

The US SEC has acknowledged BlackRock’s Ethereum ETF filing for an in-kind creation and redemption process.

The U.S. Securities and Exchange Commission (SEC) has acknowledged investment firm BlackRock’s (NYSE:BLK) Ethereum ETF filing for an in-kind creation and redemption process. For now, the securities regulator has opened the floodgates for public comments on BlackRock’s raft of amendments.

What Happened: The SEC on Wednesday confirmed the filing by BlackRock to amend certain parts of its Ethereum ETF.

According to the SEC, it is seeking comments on the amendment proposal to permit in-kind creations and redemptions for the iShares Ethereum Trust. The new shares will be issued in exchange for net underlying cryptocurrency.

The Commission will consider the comments it receives and the relevant facts and law in making its decision.

The amendments were filed on May 10. BlackRock had filed the initial application for the ETF on March 27 and met with the SEC’s Crypto Task Force on May 9. The Commission has 240 days from the date of the original filing to approve or decline the amendment proposal.

Why It's Important: The SEC has been inundated with applications for spot Bitcoin and Ethereum ETFs from several firms. While the regulator has approved several futures ETFs, it is yet to approve any spot crypto ETFs.

Earlier this year, the SEC rejected applications by WisdomTree (NYSE:WTR) and Invesco (NYSE:IVZ) for Bitcoin ETFs. Both applications were rejected due to a lack of cooperation from the Chinese crypto exchange Huobi in providing information.

Last week, the SEC extended the time period for its decision on Ark Invest’s application for the ARK Innovation ETF. The application was initially due on May 11.

The new development comes as the SEC faces a lawsuit from the industry watchdog over its alleged slow pace in approving crypto products.