BlackRock Updates Ethereum ETF Registration

BlackRock, along with other financial companies, has finalized the details for launching an Ethereum ETF in the U.S. market.

In the latest S-1 filing submitted to the SEC, BlackRock set the fund’s expense ratio for the first 12 months at 0.12%, equivalent to the initial $2.5 billion. Management firms 21Shares and Bitwise have set their rates at 0.21% and 0.2%, respectively.

Grayscale, one of the world’s largest cryptocurrency asset managers, has established a higher rate of 2.5% after 12 months of trading.

Notably, there are high expectations that the company’s Ethereum fund will experience significant capital outflows, similar to what happened earlier this year when GBTC converted to an ETF.

Eric Balchunas, an ETF analyst at Bloomberg, emphasized this trend:

“These new players have enough strength to offset the Bitcoin-like fund outflows. Regardless, the 2.5% rate [from Grayscale] makes achieving respectable net flow numbers more challenging. We’ll keep an eye on it.”

It’s worth noting that BlackRock’s IBIT has become the world’s largest Bitcoin ETF within just a few months, surpassing the decade-old GBTC.

The ETF is expected to begin trading as early as next week, representing a significant test of institutional interest in Ethereum, the second-largest cryptocurrency asset in the market.

Sentiment: Positive