The SEC has acknowledged BlackRock's filing to amend its Ethereum ETF to allow in-kind redemptions, opening a window for public comments.

The USSEC has recognized BlackRock's Ethereum ETF filing for a one-of-a-kind creation and redemption process.

For now, the securities regulator has opened the floodgates for public comment on BlackRock’s amendments.

US SEC Accepts BlackRock's Ethereum ETF Amendment Filing

The US SEC has confirmed BlackRock’s filing to amend certain parts of its Ethereum ETF.

According to a public release, the SEC recognized BlackRock's filing to authorize in-kind creations and redemptions for its iShares Ethereum Trust.

On May 10, BlackRock filed the amendment just hours after meeting with the commission’s crypto task force.

The SEC has 240 days from the original filing date to approve or reject the amendment proposal for the Ethereum ETF.

According to the statement, the SEC is seeking comments on the proposed amendment before issuing a ruling on the matter.

According to the original filing, BlackRock's Ethereum ETF will allow authorized participants to exchange $ETH for ETF shares to create and redeem shares.

Right off the bat, the extraordinary creation and redemption process will allow participants to avoid capital gains tax hassles.

If amended, participants would not be required to sell ETH for cash during the creation and redemption process, avoiding the need for capital gains taxes.

Additionally, multiple redemptions will improve liquidity and lower transaction costs for participants.

BlackRock Files to Add Anchorage Digital as Custodian

A closer look at BlackRock’s filing reveals plans to add Anchorage Digital as an additional ether custodian.

Anchorage will join Coinbase in offering security services for digital ETFs if approved by the SEC.

There is also an additional filing amendment to change the trust’s name to iShares Ethereum Trust ETF. The filing comes as BlackRock's Ethereum ETF notched its single-largest daily inflow of $45 million.

Amid the surge in ETF inflows, Ethereum’s price is trading up about 2% at $2,509. Ethereum supply hits record low on exchanges, $3 boosts hopes for ETH rally

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