Grayscale’s Ethereum Trust is the largest Ethereum investment vehicle in the world, representing 2.5% of all Ether in circulation.
Grayscale, the world’s largest crypto asset manager, has filed a Form 19b-4 with the US Securities and Exchange Commission (SEC) to convert its flagship Grayscale Ethereum Trust into a spot Ethereum ETF. The New York Stock Exchange Arca filed for the conversion with the SEC on October 2.
The application comes just days after the SEC granted Valkyrie, another asset giant, approval to add Ethereum futures contracts to its existing Bitcoin futures exchange traded fund (ETF) – the first of its kind.
Futures contracts give investors indirect exposure to crypto by letting them bet on the future price of a given asset. A spot ETF however is a different story, since it invests directly in the underlying asset.
“At Grayscale, our unwavering commitment is to offer investors transparent and regulated access to crypto through product structures that are familiar,” said Grayscale CEO Michael Sonnenshein in a statement.
“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.”
ETHE, Grayscale’s Ethereum Trust, launched in 2019 and “voluntarily” became an SEC reporting company the following year. Today, it’s the world’s largest Ether investment vehicle, with $5 billion assets under management – approximately 2.5% of all Ether in circulation.
The filing comes two months after Grayscale’s historic court victory, whereby an appeals court ruled that the SEC cannot deny the asset manager’s application for a spot Bitcoin ETF.
Grayscale now waits on approval for both Bitcoin and Ethereum spot ETFs.
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