Grayscale Proposes Ethereum Futures ETF to SEC
Grayscale Investments has submitted a Form 19b-4 filing to the SEC, seeking approval to list an ethereum futures ETF on the NYSE Arca. The digital asset manager plans to utilize ethereum futures contracts for its ETF.
Ethereum Futures Contracts
CME offers two types of ethereum futures contracts: ETH contracts representing 50 ETH and MET contracts representing 0.10 ether. These contracts enable investors to speculate on ethereum’s price movements without owning the cryptocurrency, similar to traditional futures contracts.
Grayscale’s ETF Structure
Grayscale’s proposed ETF aims to track the daily price changes of the two nearest expiring ETH contracts. To initiate an open position in futures contracts, the trust will deposit an initial margin amount, functioning as a cash performance bond.
Push for SEC Approval
After winning a verdict against the SEC for denying its spot bitcoin ETF application, Grayscale is urging the regulator to approve its spot bitcoin ETF swiftly. In its latest filing, Grayscale emphasizes that CME is a regulated futures exchange subject to oversight and regulatory vigilance, ensuring fair and transparent trading of its offerings.
Hot Take: Grayscale Seeks Diversification with Ethereum Futures ETF
By proposing an ethereum futures ETF, Grayscale Investments aims to expand its portfolio beyond bitcoin and offer investors exposure to the growing popularity of ethereum. This move highlights Grayscale’s commitment to innovation in the crypto investment space and its belief in the potential of ethereum as a valuable digital asset. If approved by the SEC, this ETF could provide a regulated and accessible way for investors to gain exposure to ethereum’s price movements without directly owning the cryptocurrency.
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