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News

Grayscale Ethereum ETF Is Now Being Revised 19b-4 Filing To The SEC

March 16, 2024 - Around 2 mins mins to read

Key Points:

  • Grayscale Investments updated its regulatory filing to convert Ethereum Trust to Grayscale Ethereum ETF.
  • The amendment emphasizes surveillance sharing and strong market correlation with CME ETH futures.
  • Despite delays, market analysts remain optimistic for SEC approval by May.
Grayscale Investments, an asset management firm, is making strides in its pursuit of a spot exchange-traded fund (ETF) for Ethereum as it amends its regulatory filing with the United States Securities and Exchange Commission (SEC).
Grayscale Ethereum ETF Is Now Being Revised 19b-4 Filing To The SEC

Read more: Grayscale Spot ETF: Basic Knowledge and Positive Future Outlook

Grayscale Ethereum ETF Conversion Is Advanced Amid Regulatory Amendments

Craig Salm, Grayscale’s chief legal officer, revealed the company’s updated Form 19b-4 for the Grayscale Ethereum ETF, emphasizing the necessity for investors to access Ethereum in ETF form, akin to Bitcoin.

The recent amendment, made on March 15, bolsters Grayscale‘s case for the uplisting of its Ethereum Trust (ETHE) to NYSE Arca. It highlights the surveillance sharing arrangement within the CME ETH market as a safeguard against fraud and manipulation in the spot ETH market.

Additionally, a correlation analysis conducted by Coinbase illustrates a strong and consistent relationship between the CME ETH futures market and the spot Ethereum market over the past three years, surpassing that of Bitcoin futures.

Optimism Prevails Despite Delays in Ethereum ETF Decision

Grayscale’s amendment delves into the mechanics of ETF share creation and redemption, specifying cash transactions only and excluding direct ETH involvement by authorized participants. The filing also updates the assets under management (AUM) of Grayscale Ethereum Trust to $11.8 billion, indicating potential value unlock upon conversion to an ETF.

Despite the optimism surrounding SEC approval, delays have characterized the process, with Grayscale Ethereum ETF’s initial deadline extended multiple times, the latest being January 25. This delay mirrors similar postponements for other ETF applicants.

Market analysts anticipate a favorable outcome from the SEC, particularly with a key decision deadline scheduled for May. However, uncertainties persist, potentially impeding swift approval akin to Bitcoin ETFs.

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.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Grayscale Ethereum ETF Is Now Being Revised 19b-4 Filing To The SEC

Key Points:

  • Grayscale Investments updated its regulatory filing to convert Ethereum Trust to Grayscale Ethereum ETF.
  • The amendment emphasizes surveillance sharing and strong market correlation with CME ETH futures.
  • Despite delays, market analysts remain optimistic for SEC approval by May.
Grayscale Investments, an asset management firm, is making strides in its pursuit of a spot exchange-traded fund (ETF) for Ethereum as it amends its regulatory filing with the United States Securities and Exchange Commission (SEC).
Grayscale Ethereum ETF Is Now Being Revised 19b-4 Filing To The SEC

Read more: Grayscale Spot ETF: Basic Knowledge and Positive Future Outlook

Grayscale Ethereum ETF Conversion Is Advanced Amid Regulatory Amendments

Craig Salm, Grayscale’s chief legal officer, revealed the company’s updated Form 19b-4 for the Grayscale Ethereum ETF, emphasizing the necessity for investors to access Ethereum in ETF form, akin to Bitcoin.

The recent amendment, made on March 15, bolsters Grayscale‘s case for the uplisting of its Ethereum Trust (ETHE) to NYSE Arca. It highlights the surveillance sharing arrangement within the CME ETH market as a safeguard against fraud and manipulation in the spot ETH market.

Additionally, a correlation analysis conducted by Coinbase illustrates a strong and consistent relationship between the CME ETH futures market and the spot Ethereum market over the past three years, surpassing that of Bitcoin futures.

Optimism Prevails Despite Delays in Ethereum ETF Decision

Grayscale’s amendment delves into the mechanics of ETF share creation and redemption, specifying cash transactions only and excluding direct ETH involvement by authorized participants. The filing also updates the assets under management (AUM) of Grayscale Ethereum Trust to $11.8 billion, indicating potential value unlock upon conversion to an ETF.

Despite the optimism surrounding SEC approval, delays have characterized the process, with Grayscale Ethereum ETF’s initial deadline extended multiple times, the latest being January 25. This delay mirrors similar postponements for other ETF applicants.

Market analysts anticipate a favorable outcome from the SEC, particularly with a key decision deadline scheduled for May. However, uncertainties persist, potentially impeding swift approval akin to Bitcoin ETFs.

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.
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