Grayscale Spot Ethereum ETF Updated S-3 Registration Statement Under New Requirements

Key Points:

• Grayscale submitted a revised S-3 statement for Grayscale spot Ethereum ETF following BlackRock’s recent update.
• The filing details that 0.94552590 Ether is needed for 100 shares, highlighting transparency and institutional demand.

On Thursday, Grayscale Investments submitted a revised S-3 registration statement for Grayscale spot Ethereum ETF, just a day after BlackRock updated its S-1 statement and a week after the U.S.

Grayscale Spot Ethereum ETF Updated S-3 Form

Securities and Exchange Commission (SEC) approved 19b-4 forms for eight Ethereum exchange-traded funds (ETFs). In its latest filing, Grayscale detailed the regulatory treatment of Ether and outlined the specific amount required for share creation, signaling a significant move towards transforming its Ethereum trust into a spot Ethereum ETF.

The amendment specifies that, as of May 28, 2024, approximately 0.94552590 Ether would be needed to create 100 shares. This level of detail underscores Grayscale’s commitment to transparency and highlights the growing institutional demand for cryptocurrencies. The Grayscale Ethereum Trust, which was launched in March 2019, holds about 2.5% of all circulating Ether, making it one of the largest Ethereum investment products globally.

Increased SEC Scrutiny on Crypto ETFs

The update of Grayscale spot Ethereum ETF follows the SEC’s recent engagement with issuers regarding their S-1 forms, a process expected to take weeks as the SEC reviews and provides feedback, leading to further amendments. The scrutiny underscores the importance of regulatory compliance in the evolving cryptocurrency industry.

According to a filing on Wednesday, Grayscale also appointed Coinbase, a centralized exchange, as its fund custodian lately.

Ethereum has been affected to the point where it is now considered an asset by the SEC’s approval of spot ETFs. Investors have expressed serious concerns about the absence of regulatory guidance, which has been addressed with the introduction of Ethereum ETFs.