Crypto asset manager Grayscale has officially submitted an application to the U.S. Securities and Exchange Commission (SEC) seeking approval to convert its Grayscale Ethereum Trust into a spot Ethereum exchange-traded fund (ETF). This follows the recent green light for the first Ether futures exchange-traded fund.
NY Stock Exchange Arca Leads the Charge
On October 2, the New York Stock Exchange Arca spearheaded the filing for the conversion. This signaled Grayscale’s proactive stance in navigating the evolving landscape of cryptocurrency investment.
Grayscale’s Ethereum Trust, which initially invested in Ether futures contracts for exposure to ETH, is now eyeing a transition to a spot ETF. This strategic shift means the ETF will directly invest in the underlying asset. This further marks a significant evolution in Grayscale’s investment approach.
CEO Michael Sonnenshein’s Vision Unveiled
Grayscale CEO Michael Sonnenshein took to X to announce this pivotal move.
Emphasizing the company’s commitment to providing conventional investment products, Sonnenshein stated,“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.”
From Inception to SEC Reporting: The Journey of Grayscale Ethereum Trust
Launched in March 2019, the Grayscale Ethereum Trust achieved SEC reporting company status in October 2020. This milestone granted the public direct insight into the performance of Grayscale’s cryptocurrency investment vehicle. Further, it solidified its position in the market.
As of the latest valuation, the Ethereum Trust stands at an impressive $4.9 billion, constituting approximately 2.5% of circulating ETH. Grayscale also reports that a staggering 250,000 investor accounts have exposure to the trust, underlining the widespread interest in Grayscale’s offerings.
Four Phases to Success: Grayscale’s Commitment
Grayscale remains steadfast in its commitment to guiding its cryptocurrency products through an “intended four-phase lifecycle,” culminating in the conversion to an ETF. Currently, the platform boasts a diverse array of 17 cryptocurrency investment products.