Grayscale To Convert Its Ethereum Trust To A Spot ETH ETF

It has been just revealed the fact that Grayscale is making important moves these days. Check out what the financial giant is doing in order to convert its ETH trust to a spot ETH ETF.

Grayscale Investments and NYSE Arca have submitted Form 19b-4 to the SEC to transform the Grayscale Ethereum trust into a spot ether ETF. This move follows the SEC’s approval of the first ETH futures ETFs. Today, VanEck and ProShares introduced their own ether futures-based ETFs.

“As we file to convert ETHE to an ETF, the natural next step in the product’s evolution, we recognize this as an important moment to bring Ethereum even further into the U.S. regulatory perimeter,” Grayscale CEO Michael Sonnenshein said in a statement.

In March 2019, the Grayscale Ethereum trust was launched and later voluntarily became an SEC reporting company in October 2020. It is currently the biggest investment vehicle for ETH globally, with almost $5 billion in assets under management, representing 2.5% of all ETH in circulation.

Recently, Grayscale filed paperwork with the SEC for a new ETH futures ETF under the Securities Act of 1933. They previously filed for a separate ether futures ETF under the Investment Company Act of 1940. The SEC has previously approved bitcoin futures ETFs registered under both acts, which may explain why Grayscale filed under both.

In October 2021, Grayscale filed to convert its Grayscale Bitcoin trust (GBTC) to a spot bitcoin ETF. The company obtained victory in its case against the SEC last month and now awaits the agency’s approval for the conversion filing. JPMorgan predicts that the SEC will likely approve numerous spot bitcoin ETF applications following Grayscale’s victory.

Grayscale has declared its commitment to converting all of its trust products to ETFs.

Stay tuned for more news from the crypto space and make sure to also keep your eyes on the market as well.