Grayscale's Latest Attempt to Launch Ethereum Futures ETF

Grayscale’s Strategic Shift to Ethereum Futures ETF

Grayscale Investments, a major player in the cryptocurrency investment sector, has made a second attempt at launching an Ethereum futures exchange-traded fund (ETF). This time, they have taken a different regulatory approach by submitting the application under the Securities Act of 1933, which is typically associated with commodities and Bitcoin ETFs.

The initial application was filed under the Investment Company Act of 1940, which governs securities-based ETFs. However, Grayscale’s decision to switch to the Securities Act of 1933 has sparked speculation about their underlying reasons for this strategic move.

Grayscale’s Determination to Launch Ethereum Futures ETF

Grayscale Investments is determined to launch an Ethereum futures ETF and has submitted another application for approval. This time, they have chosen to deviate from their previous approach and submit the application under the Securities Act of 1933.

Their initial application was based on the Investment Company Act of 1940, which is commonly used for securities-based ETFs. However, by aligning with the Securities Act of 1933, which is typically associated with commodities and Bitcoin ETFs, Grayscale may be increasing their chances of approval.

SEC Approaching Approval of Ethereum Futures ETFs

The Securities and Exchange Commission (SEC) is currently reviewing six applications for Ethereum futures-based exchange-traded funds (ETFs), including Grayscale’s Ethereum Futures ETF. Sources suggest that approval could come as early as October.

Despite the SEC’s silence on the matter, there is speculation that approval is on the horizon. The intense competition among firms vying for approval leaves uncertainty about which ones will secure it first.

Hot Take: Grayscale’s Strategic Move and the Future of Ethereum Futures ETFs

Grayscale’s decision to switch regulatory approaches for their Ethereum futures ETF application has raised questions about their motives. By submitting under the Securities Act of 1933, they may be seeking to enhance their chances of approval.

The SEC’s imminent approval of Ethereum futures-based ETFs signals a significant development for the cryptocurrency industry. If approved, these ETFs could provide more accessibility and legitimacy to Ethereum as an investment asset.