Key takeaways :
- Grayscale Investments Seeks SEC Approval to Transform Ethereum Trust (ETHE) into Spot ETF via NYSE Arca
- The company’s Ethereum trust is the largest ether investment product in the world
Grayscale Investments, a leading crypto asset management firm managing nearly $5 billion in assets, has filed with the U.S. Securities and Exchange Commission (SEC) through NYSE Arca to convert its Grayscale Ethereum Trust (ETHE) into a spot Ethereum exchange-traded fund (ETF).
ETHE, launched in March 2019, currently stands as the world’s largest ether investment product, representing approximately 2.5% of the total circulating supply of Ether.
This strategic move coincides with the launch of the first Ethereum Futures ETF on the same day. Grayscale CEO Michael Sonnenshein emphasized their commitment to providing investors with transparent and regulated access to cryptocurrencies through familiar product structures, stating :
“As we file to convert ETHE to an ETF, the natural next step in the product’s evolution, we recognize this as an important moment to bring Ethereum even further into the U.S. regulatory perimeter.“
As of the time of this report, Grayscale’s Ethereum Trust boasts an impressive valuation of nearly $4.9 billion, making up approximately 2.5% of the total circulating Ethereum supply. Notably, the trust has attracted 250,000 investor accounts seeking exposure to Ethereum.
Furthermore, Grayscale is unwavering in its commitment to guiding its cryptocurrency products through a meticulously planned “four-phase lifecycle,” ultimately culminating in their conversion to exchange-traded funds (ETFs). Currently, the platform offers a diverse range of 17 cryptocurrency investment products.
This significant announcement follows closely on the heels of Grayscale’s recent legal triumph against the SEC, fortifying the company’s prospects for converting its Grayscale Bitcoin Trust (GBTC) into an ETF as well.
David LaValle, Grayscale’s Global Head of ETFs, expressed enthusiasm about the filing, stating, “We are proud to collaborate with NYSE Arca in this endeavor and eagerly anticipate engaging with the SEC in the next steps of this process.”
The decision is anticipated to increase the pressure on SEC Chair Gary Gensler to greenlight a Bitcoin ETF. The significant victory has likely emboldened Grayscale to pursue a similar path with Ethereum. The authorization of a spot cryptocurrency ETF would represent a crucial milestone for both investors and the broader cryptocurrency industry.