Is there hope for crypto ETF progress? BlackRock meets with SEC panel, submits revised IBIT, ETHA

Asset giant BlackRock is making a move again! After meeting with the SEC's cryptocurrency working group, BlackRock submitted revised documents for the Ethereum ETF (ETHA) and Bitcoin ETF (IBIT), adding significant hope to the progress of crypto ETFs. Bloomberg ETF analysts expect the SEC to approve physical creation/redemption crypto ETFs this year.

BlackRock Meets with SEC Crypto Working Group

Asset giant BlackRock met with the SEC's cryptocurrency working group on 5/9 to discuss important digital asset regulatory issues. The main meeting contents included:

• BlackRock Digital Asset Product Portfolio: Introducing market developments for IBIT, ETHA, and BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
• Staking: Discussing how to handle staking mechanisms within the regulatory framework, including supporting ETPs with staking capabilities.
• Tokenization: Exploring how to promote securities tokenization within the federal securities regulatory framework.
• Cryptocurrency ETP Approval Standards: Including specific standards for approving cryptocurrency ETPs and potential transitional regulatory frameworks for issuers.
• Cryptocurrency ETP Options: Discussing appropriate position and exercise limit standards, and considering liquidity thresholds of underlying assets.

The meeting was attended by BlackRock's regulatory affairs, digital assets, and legal compliance experts.

BlackRock Subsequently Submits Modified ETHA and IBIT Documents

BlackRock subsequently updated the revised documents for its Ethereum ETF (ETHA) and Bitcoin ETF (IBIT).

According to Bloomberg analyst James Seyffart's tweet, the documents mainly added language allowing for physical creation/redemption when approved by the SEC. Bloomberg previously expected SEC approval this year.

NEW: Amended S-1 just dropped for BlackRock's Ethereum ETF — $ETHA. Looks like the main change is added language around allowing for in-kind creation/redemption when approved by the SEC.

(@EricBalchunas & I expect SEC approval for in-kind at some point this year) pic.twitter.com/HWkTfrDNsJ

— James Seyffart (@JSeyff) May 9, 2025

Additionally, its Bitcoin ETF IBIT added new content about quantum computing risks. In early January this year, Nasdaq had also submitted a filing hoping to allow physical redemption and creation of BlackRock's Bitcoin spot ETF (IBIT).

ETFs with physical redemption and creation should theoretically have higher trading efficiency. Using gold ETFs as an example, most issuers choose the physical mode with a relatively simple process. If successfully converted, it should increase ETF efficiency and save costs.

(ETF Explained | What's the Difference Between SEC's Preferred Cash Mode and BlackRock's Bitcoin Physical ETF?)

BlackRock Makes a Move, New Crypto ETF Launch Imminent?

As the world's largest asset management company, BlackRock has assets under management totaling $11.58 trillion. Its Bitcoin spot ETF IBIT has assets of $62.9 billion, while the Ethereum ETF ETHA has assets of $2.6 billion.

Initially, many asset management companies submitted Bitcoin spot ETF applications and struggled with the SEC for years without success, until BlackRock's involvement made everything proceed smoothly and quickly. Now, BlackRock's latest move seems to add more hope to the progress of crypto ETFs.

BlackRock also recently plans to issue distributed ledger technology (DLT) shares through BNY Mellon, moving its $150 billion money market fund onto the blockchain to further implement tokenized asset applications.

(BlackRock Issuing Tokens? $150 Billion Money Market Fund Plans to Use DLT, Collaborating with BNY Mellon to Launch Tokenized Shares)