Grayscale Collaborates with NYSE Arca to File for Ethereum ETF Conversion
Grayscale Investments and NYSE Arca have jointly filed Form 19b-4 with the SEC to convert the Grayscale Ethereum trust into a spot ether exchange-traded fund (ETF). This move follows the recent approval of the first ETH futures ETFs by the SEC. VanEck and ProShares have already launched ether futures-based ETFs.
Bringing Ethereum Further into U.S. Regulatory Perimeter
Grayscale CEO Michael Sonnenshein stated that filing to convert ETHE to an ETF is the natural next step in the product’s evolution. He believes this is an important moment to bring Ethereum even further into the U.S. regulatory perimeter.
The Largest ETH Investment Vehicle
The Grayscale Ethereum trust was established in March 2019 and became an SEC reporting company in October 2020. It currently holds nearly $5 billion in assets under management, representing 2.5% of all ETH in circulation. Grayscale’s goal is to convert all of its trust products into ETFs.
Previous Filings and Victories
Last month, Grayscale filed for a new ETH futures ETF under the Securities Act of 1933 and a separate ether futures ETF under the Investment Company Act of 1940. The company also filed to convert its Grayscale Bitcoin trust (GBTC) to a spot bitcoin ETF in October 2021. Following a victory against the SEC, Grayscale awaits the agency’s approval for the conversion filing.
Hot Take: Grayscale Continues Commitment to ETF Conversion
Grayscale remains committed to converting all of its trust products, including Ethereum and Bitcoin, into ETFs. This move is in line with the growing acceptance and adoption of cryptocurrencies in traditional financial markets. With the recent approval of ETH futures ETFs and the anticipation of spot bitcoin ETF approvals, it is clear that cryptocurrency investment vehicles are evolving to meet the demands of institutional and retail investors.
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