SEC Today Approved Grayscale Ethereum ETF Filling, Nate Geraci Confirms

Key Points:

• The U.S. SEC has recognized Grayscale’s spot Ethereum ETF filing, which will be the process of converting ETHE into an ETF
• The Grayscale Ethereum Trust currently holds 2.5% of circulating ETH and has $5 billion in assets.

President of The ETF Store said that the U.S. SEC has recognized Grayscale Ethereum ETF filing, which will be the process of converting ETHE into an ETF.

Grayscale Investments has filed a proposal with the U.S. Securities and Exchange Commission (SEC) on October 2, 2023, in partnership with NYSE Arca, to transform its Grayscale Ethereum Trust (ETHE) into an Ethereum spot exchange-traded fund (ETF). The SEC has recently acknowledged the filing, as confirmed by Nate Geraci, President of The ETF Store, indicating a step forward in the approval process.

The Grayscale Ethereum Trust is currently the largest Ethereum investment vehicle in the world, comprising 2.5% of all circulating ETH. Since launching in 2019, the conversion into a spot ETF has been the “final stage” of its intended lifecycle, as stated in a press release. The proposed conversion could potentially lead to increased investor participation in the fund, which currently manages $5 billion in assets.

Grayscale Ethereum ETF

Grayscale’s move to shift its Ethereum Trust Fund into an ETF is not entirely surprising, considering the success of its Bitcoin fund, which has been trading as an ETF since 2019.

The Grayscale Ethereum Trust is structured similarly to the Bitcoin fund, holding the underlying asset and allowing investors to purchase shares, which represent a fraction of the total holding. However, the proposed conversion of ETHE into an ETF will allow investors to trade it on the stock exchange like any other stock, with the added benefit of being backed by physical Ethereum.

Grayscale has joined other firms in filing for a futures Ethereum ETF, backed by cash-settled futures contracts rather than actual ETH. Futures contracts are agreements to buy or sell a financial asset at a set price on a future date, making them a speculation on the asset’s price trajectory, rather than an actual purchase of the asset.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.