Grayscale Ethereum ETF May Be Launched With New Application

Key Points:

• Grayscale files to convert Ethereum Trust to a spot ETF.
• Grayscale Ethereum ETF would allow investors to invest in Ethereum directly.
• Approval of the ETF would be a major milestone for the cryptocurrency industry.

Grayscale Investments, the world’s largest digital asset manager, has filed an application with the US Securities and Exchange Commission (SEC) to convert its Grayscale Ethereum Trust (ETHE) to a spot Ethereum exchange-traded fund (Grayscale Ethereum ETF).

Grayscale Files to Convert Ethereum Trust to Grayscale Ethereum ETF

The filing comes after the SEC approved the first Ethereum futures ETFs in October 2021. Grayscale Ethereum ETF would allow investors to gain exposure to the price of Ethereum directly, rather than through futures contracts.

ETHE is currently the largest Ether investment vehicle in the world, with assets under management of nearly $5 billion. The trust’s shares trade millions of dollars in daily volume and are held by more than a quarter of a million American investor accounts.

“At Grayscale, our unwavering commitment is to offer investors transparent and regulated access to crypto through product structures that are familiar. 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,” said Grayscale CEO Michael Sonnenshein.

A Major Milestone for Ethereum Investors

Grayscale remains committed to shepherding each of its digital asset products through its intended four-phase lifecycle, with the fourth and final stage being conversion to an ETF. ETHE launched in March 2019, received a public quotation in May 2019, and voluntarily became an SEC reporting company in October 2020.

The approval of the Grayscale Ethereum ETF would be a major milestone for the cryptocurrency industry, as it would provide investors with a more direct and convenient way to invest in Ethereum.

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