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Grayscale Investment filed an application with the SEC seeking to reshape its current ethereum-based trust into an exchange-traded fund tied to the spot price of Ether.
The conversion move was disclosed in a Form 19b-4 SEC filing by Arca of the New York Stock Exchange (NYSE), said Grayscale Chief Legal Officer Craig Salm. confirmed via a post on X (formerly Twitter).
If successful, the offering would convert the largest ethereum-focused investment fund from a publicly traded private trust into a spot Ether ETF.
Grayscale ethereum Trust, which trades under the symbol ETHE, holds $5 billion in assets under management (AUM) and represents more than 2% of the circulating supply of eth at the time of this publication.
The company also filed for a new Grayscale ethereum futures ETF amid a race among institutions looking to reclaim market share from crypto funds and serve U.S. investors. This particular product would allow customers to bet on the future price of ethereum (eth).
In contrast, spot products are linked to real-time asset market prices.
As we file to convert ETHE into an ETF, the natural next step in the product’s evolution, we recognize that this is an important time to bring ethereum further into the US regulatory perimeter.
Michael Sonnenshein, CEO of Grayscale
The filing follows a series of ethereum ETF bets with the SEC by issuers hoping to offer spot or futures products and, in some cases, both.
As crypto.news previously reported, there are several issuers like VanECK that will likely begin trading ethereum futures ETFs following SEC approval. In fact, the VanEck ethereum Strategy ETF was launched on October 2 and other fund managers are expected to follow suit.
The SEC accelerated a series of filings due to the impending government shutdown, although several decisions on bitcoin spot ETFs have been delayed until 2024. Issuers such as BlackRock, Fidelity and WisdomTree are among the bidders to issue the first bitcoin spot ETF USA.
Grayscale is also awaiting a decision from the SEC on its bitcoin Trust or GBTC product after a landmark ruling. Three judges ruled that the SEC must review its decision to deny Grayscale’s application for a spot bitcoin ETF.
