Grayscale, as reported by the Wall Street Journal on September 19, has filed for an Ethereum futures ETF. According to the report, Grayscale’s submission falls under the purview of the Securities Act of 1933. This filing represents a departure from Grayscale’s previous attempts at an Ethereum futures ETF.
Furthermore, the Wall Street Journal has duly highlighted that the U.S. SEC has given the green light to several Bitcoin futures ETFs. They were approved under both the 1933 and 1940 Acts. However, in stark contrast, spot Bitcoin ETFs, although numerous in submission, have yet to receive regulatory approval under the 1933 Act.
Additionally, the SEC’s prior approval of specific Bitcoin futures ETFs, which began around October 2021, has created a favorable climate. This climate, coupled with the overall positive sentiment surrounding cryptocurrency ETFs, encourages asset managers to consider the possibility of Ethereum futures ETFs.
Growing Interest in Ethereum Futures ETF and Grayscale’s Pursuit of a Bitcoin Spot ETF
Notably, an array of asset management firms has already embraced this burgeoning trend. Just in recent weeks, companies like Volatility Shares, Bitwise, ProShares, VanEck, Roundhill, and Valkyrie Investments, among others, have eagerly submitted applications for Ethereum futures ETFs.
Additionally, Hashdex, as identified by The Wall Street Journal, represents yet another contender in this growing field. All these firms combined bring the total number of applicants to no less than 12.
Simultaneously, Grayscale is actively pursuing the establishment of a Bitcoin spot ETF. These efforts to secure an ETF of any kind hold significant importance. This is especially noteworthy because Grayscale intends to transform its existing GBTC fund into a Bitcoin spot ETF.
Despite the SEC’s initial rejection of Grayscale’s application in 2022, there has been a significant development. In August, the firm achieved a partial legal triumph, which is likely to compel the SEC to revisit its application.
DC Court Signals Favorable Outlook for Grayscale’s ETF Conversion, SEC Review Still Pending
As elucidated by The Wall Street Journal, the judges presiding over the D.C. Court of Appeals opined that Grayscale’s proposed ETF conversion bears substantial resemblance to previously sanctioned Bitcoin futures ETFs, seemingly favoring the company’s cause.
Notwithstanding the widespread optimism, this ruling does not obligate the SEC to grant approval for Grayscale’s proposed ETF. It merely necessitates a comprehensive review of the application.
Other companies are also avidly pursuing Bitcoin spot ETFs, closely patterning their proposals after the much-publicized application submitted by BlackRock in June. Notably, Grayscale’s own Bitcoin spot ETF petition predates and deviates from BlackRock’s submission, as it pertains to an extant fund.