Bloomberg analyst James Seyffart reported that BlackRock submitted amended versions of S-1 registration forms for two cryptocurrency ETFs — Ethereum Trust (ETHA) and Bitcoin Trust (IBIT). The new version for ETHA includes provisions related to the creation and redemption of shares through an in-kind model, which implies settlements not in fiat currency but in the underlying asset.
The mechanism, which is widely used in traditional ETFs, allows for reduced tax burdens and increased transparency of operations. For cryptocurrency funds, it can simplify the arbitration process and make the product more attractive to institutional participants. Including such a scheme in the S-1 form indicates BlackRock's desire to adapt the Ethereum ETF to stock market standards, despite still unresolved regulatory issues.
At the same time, the company modified the S-1 document for its Bitcoin ETF under the ticker IBIT, adding a section dedicated to potential threats from quantum computing. The document states that advancements in technology could increase risks to the resilience of the cryptographic algorithms underlying Bitcoin.
Although the threats remain theoretical for now, their consideration in the documentation indicates a focus on the long-term sustainability of the investment product.
An expert noted that including quantum risks in official documents could become the new norm for crypto ETFs. Such steps help regulators and investors better assess threat horizons that were previously rarely mentioned in applications. BlackRock, as the largest asset management company, sets industry standards, and its initiatives are likely to be adopted by other applicants.