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Grayscale modified a regulatory filing through which it intends to convert its Trust in ethereum to a cash exchange-traded fund (ETF).
From the company March, 15th The amendment strengthens its previous presentation in multiple ways. The update supports the argument that shared surveillance within the CME eth market is sufficient to protect against fraud and manipulation in the eth spot market.
Grayscale's latest amendment includes a correlation analysis performed by Coinbase as evidence of sufficient market correlation. Coinbase found that the CME eth futures market has been “consistent and highly correlated” with the ethereum spot market for approximately the last three years.
The rate is higher than the correlation the SEC found between the CME bitcoin futures market and the bitcoin spot market.
Grayscale's amendment also expands the creation and redemption of ETF shares. In particular, this section describes cash creations and refunds only. Consequently, it states that authorized participants cannot purchase, hold, deliver, or receive eth.
According to the filing, Grayscale ethereum Trust now holds $11.8 billion in assets under management (AUM) instead of $4.8 billion AUM. Converting the fund to an ETF would unlock more than $1.73 billion in value instead of the previously estimated $1.6 billion.
Grayscale Advocates for ETFs
Craig SalmGrayscale The chief legal officer acknowledged the presentation and emphasized the expected broad appeal of ethereum spot ETFs. He wrote in X that investors “They want and deserve access to ethereum in the form of an ethereum spot ETF.”
Salm added that the case for an ethereum ETF “is as strong as it was for spot bitcoin ETFs.”
Market manipulation and creation/redemption methods were key concerns before spot bitcoin ETFs gained approval in January. Grayscale's latest amendment is vital as it addresses those same issues in the context of ethereum ETFs.
Grayscale's amendment comes with lower expectations for regulatory approval. ethereum-etf-approved-by-may-31″>Polymarket puts the ethereum ETF approval odds for the end of May at just 26% as of March 15.
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