Grayscale Ethereum Trust Seeks Conversion to Spot Ethereum ETF
Grayscale Investments, the world’s largest crypto asset manager, has announced that NYSE Arca has filed a Form 19b-4 with the SEC to convert the Grayscale Ethereum Trust into a spot Ethereum exchange-traded fund (ETF). This move aims to provide investors with transparent and regulated access to cryptocurrency through familiar product structures. Grayscale’s Ethereum Trust, which launched in 2019 and became an SEC reporting company in 2020, currently holds nearly $5 billion in assets under management.
Grayscale Aims for Spot Ether ETF
In its press statement, Grayscale Investments revealed that it applied with the US Securities and Exchange Commission (SEC) to convert its existing Ethereum Trust into a spot Ethereum ETF. CEO Michael Sonnenshein took to Twitter to announce the news and express gratitude for ongoing support. Grayscale believes that converting ETHE to an ETF is the natural next step in the product’s evolution, bringing Ethereum further into the US regulatory perimeter.
Grayscale Joins Ark Invest, 21Shares
Following in the footsteps of Ark Invest and 21Shares, Grayscale has applied for a spot Ethereum ETF. Both Ark Invest and 21Shares are awaiting SEC approval for their applications. Grayscale’s application comes as it continues to build its ETF team and product suite, offering investors unmatched crypto expertise.
Bitcoin Spot ETF Wait Continues
While Grayscale aims for a spot Ethereum ETF, frustration grows as Bitcoin spot ETF applications wait for SEC approval. The agency’s concerns about potential risks associated with crypto investments have delayed its decision-making process. In August, Grayscale secured a victory over the SEC after successfully arguing against further delays or denial of its Bitcoin ETF conversion proposal. Grayscale has urged the SEC to greenlight Bitcoin spot ETF applications.
Hot Take: Grayscale Expanding Crypto Investment Opportunities
Grayscale Investments’ filing to convert its Ethereum Trust into a spot Ethereum ETF demonstrates its commitment to providing investors with transparent and regulated access to cryptocurrency. By seeking regulatory approval, Grayscale aims to bring Ethereum further into the US regulatory framework, expanding the investment opportunities in the crypto market. This move aligns with Grayscale’s mission to offer familiar product structures that meet investor needs while upholding regulatory standards. As the crypto industry continues to evolve, Grayscale’s efforts contribute to mainstream adoption and increased investor confidence in digital assets.
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