Grayscale Files SEC Submission for Ethereum Trust's Conversion into Spot ETF

Grayscale Investments Seeks Conversion to Spot Ether ETF

Grayscale Investments is planning to convert its Grayscale Ethereum Trust into a spot Ether exchange-traded fund (ETF) following the approval of the first Ether futures ETF. The New York Stock Exchange Arca filed for the conversion with the US Securities and Exchange Commission (SEC) on October 2. The Grayscale Ethereum Trust, which currently invests in Ether futures contracts, will transition to investing in the underlying asset itself.

Grayscale CEO Michael Sonnenshein announced the move on Twitter and expressed the firm’s commitment to providing traditional investment products that offer exposure to cryptocurrency assets. He stated that converting ETHE to an ETF is a natural step in the product’s evolution and will further bring Ethereum into the US regulatory framework.

About Grayscale Ethereum Trust

The Grayscale Ethereum Trust was launched in March 2019 and became an SEC reporting company in October 2020, allowing public access to its cryptocurrency investment vehicle’s performance data. Currently valued at $4.9 billion, it represents around 2.5% of circulating ETH and has 250,000 investor accounts with exposure to the trust.

Commitment to Cryptocurrency Products

Grayscale has affirmed its commitment to taking its cryptocurrency products through a four-phase lifecycle, culminating in their conversion to ETFs. The platform currently offers 17 different cryptocurrency investment products.

Hot Take: Grayscale Expands Access to Crypto Investments

Grayscale Investments’ decision to convert its Grayscale Ethereum Trust into a spot Ether ETF demonstrates the increasing demand for traditional investment vehicles offering exposure to cryptocurrencies like Ethereum. By seeking regulatory approval for this conversion, Grayscale aims to bring Ethereum further into the US regulatory framework and provide investors with more accessible and transparent investment options. This move highlights Grayscale’s commitment to expanding access to cryptocurrency investments and catering to the evolving needs of the market.