Grayscale Files to Convert Its Ethereum Trust to Spot ETH ETF

In the latest move, the world’s largest asset manager Grayscale has filed with the U.S. Securities and Exchange Commission (SEC) in order to convert its Ethereum Trust (ETHE) to a spot Ethereum ETF. The development comes more than a month after the US court granted Grayscale a victory over the SEC in the spot Bitcoin ETF lawsuit.

Grayscale has filed Form 19b-4 with the US SEC along with NYSE Arca. Interestingly, the filing comes on the same day when the first Ethereum Futures ETF will hit the market. Speaking on the development, Grayscale CEO Michael Sonnenshein said:

“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.”

Grayscale remains committed to overseeing each of its digital asset products through a structured four-phase lifecycle, ultimately culminating in the conversion to an exchange-traded fund (ETF).

The Ethereum Trust (ETHE), which was launched in March 2019, achieved a public listing in May 2019, and proactively transitioned into an SEC reporting company in October 2020. Today, it stands as the world’s largest investment vehicle for Ethereum, managing assets valued at nearly $5 billion, equivalent to 2.5% of the total circulating Ether.

With shares trading in millions of dollars in daily volume, the product has garnered the support of over a quarter of a million American investor accounts. Grayscale Global Head of ETFs David LaValle said:

“This filing is another important milestone as Grayscale continues to build its best-in-class ETF team, product suite, and capabilities – serving investors as a globally respected asset manager with unmatched crypto expertise. We are proud to partner with NYSE Arca on this filing and look forward to engaging with the SEC on next steps.”

Will Grayscale Filing Help ETH Price Rally?

Note that Grayscale is not among the first to file for a spot Ethereum ETF. Last month in September, Ark Invest submitted a similar filing with the US SEC.

Earlier today, the ETH price rallied to $1,750 levels amid excitement surrounding the futures ETF launch. However, the ETH price retraced partially and currently trading around $1,731 levels. For the ETH price rally to continue, it must break the resistance of $1,750. The next immediate target would be $1,800 and $2,00 further.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.