Grayscale Files to Convert Ethereum Trust to Spot Ethereum ETF

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Grayscale Investments announced today that NYSE Arca filed with the SEC to convert the Grayscale Ethereum Trust to a spot Ethereum ETF. 

The world’s largest crypto asset manager, Grayscale Investments, announced today that NYSE Arca filed a Form 19b-4 with the SEC to convert Ethereum Trust to a spot Ethereum exchange-traded fund (ETF). 

Grayscale Aims for Spot Ether ETF

In a press statement, Grayscale Investments announced it applied with the US Securities and Exchange Commission (SEC) to convert its existing Ethereum Trust into a spot Ethereum ETF. 

Michael Sonnenshein, Grayscale CEO, announced the news on X (Twitter). 

🚨 @Grayscale has filed to convert Grayscale Ethereum Trust to a spot ETF. $ETHE

Thank you for your continued support — our team is just getting started! https://t.co/3nNtfe4Nns

— Sonnenshein (@Sonnenshein) October 2, 2023

Sonnenshein said in a statement:

“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.” 

The asset manager’s Ethereum Trust launched in March 2019 and became an SEC reporting company in October 2020. Grayscale’s product is currently the largest Ether investment opportunity in the world, with nearly $5 billion in assets under management. 

Grayscale Global Head of ETFs, David LaVelle, also commented on the announcement, saying:

“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.” 

Grayscale Joins Ark Invest, 21Shares

Grayscale’s application for a spot Ethereum ETF comes soon after asset managers Ark Invest and 21Shares applied for the first spot Ethereum ETF in the US. Ark Invest and 21Shares, which names Coinbase Custody Trust Company as its Custodian, is awaiting approval from the SEC for the “Ark 21Shares Ethereum ETF.”

Bitcoin Spot ETF Wait Continues

Frustration is high as applications for Bitcoin spot ETFs continue to wait for approval from the SEC. The securities agency is lagging in delivering its decision due to concerns surrounding the potential risks of crypto investments. In a recent letter, Grayscale urged the agency to greenlight Bitcoin spot ETF applications after it secured a victory over the SEC. In August, a judge ruled in favour of Grayscale after it successfully argued the agency lacks substantial grounds for further delays or a denial of its Bitcoin ETF conversion proposal.

 Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.