Grayscale Investments Applies for Ethereum Futures ETF
Grayscale Investments has submitted a new application for an Ethereum Futures Exchange-Traded Fund (ETF), marking its second attempt at gaining approval. The company has adopted a regulatory strategy that aligns with the framework used for reporting commodities and Bitcoin ETFs, a path also chosen by five other companies. This dual-application strategy aims to increase the likelihood of approval. The U.S. Securities and Exchange Commission (SEC) is currently reviewing six Ethereum Futures ETF applications, with potential approvals expected in October.
Grayscale’s Legal Victory and Optimistic Outlook
In June 2022, Grayscale’s application to convert the Grayscale Bitcoin Trust into a Bitcoin spot ETF was denied by the SEC. However, in August 2023, a court ruled that the SEC should reevaluate Grayscale’s application, leading to optimism about the ongoing lawsuit against the SEC. Bloomberg Intelligence’s Elliott Z. Stein believes Grayscale has a 70% chance of prevailing and expects the SEC to approve Grayscale’s ETF request before the court delivers its decision in August 2023.
Increasing Scrutiny on Cryptocurrency ETFs
Cryptocurrency ETF applications, including Grayscale’s Ethereum Futures ETF, are facing growing scrutiny from the SEC. Compliance with the law, particularly in relation to fragmented and unregulated Bitcoin spot markets, is a major concern for the SEC. Overcoming these regulatory challenges is crucial for cryptocurrency ETF applicants.
The Potential Impact of an Ethereum Futures ETF
If approved, an Ethereum Futures ETF could be a significant milestone in the cryptocurrency investment landscape. It would provide broader and more accessible investment opportunities in Ethereum futures and reshape the industry. Other companies such as Bitwise, Roundhill, ProShares Short, and VanEck are also seeking approvals for Ethereum ETFs.
Hot Take: Grayscale’s Persistence May Pay Off
Grayscale Investments’ persistence in pursuing ETF approval, despite initial setbacks, could potentially lead to a breakthrough with its Ethereum Futures ETF. With an ongoing lawsuit against the SEC and an optimistic outlook from experts, there is a strong possibility of success. The approval of an Ethereum Futures ETF would not only benefit Grayscale but also open doors for more investors to enter the cryptocurrency market and participate in Ethereum futures trading.
By
By
By
By
By
By