Grayscale Investments, the largest digital asset fund manager by assets under management (AUM), has filed to convert its Ethereum Trust into a spot ether exchange-traded fund (ETF). The news follows ether futures ETFs from Vaneck, Bitwise, and Proshares launching on Monday.
Grayscale’s Ethereum Trust on Path to Become Spot Ether ETF
On October 2, 2023, Grayscale announced it has submitted a Form 19b-4 to the U.S. Securities and Exchange Commission (SEC) to convert its Ethereum Trust into a physically backed ETF on NYSE Arca.
“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 CEO Michael Sonnenshein said.
The company’s press release said the Form 19b-4 filing coincides with the futures ETFs from Vaneck, Proshares, and Bitwise that began trading Monday. Grayscale is also working to convert its Bitcoin Trust into a physically backed ETF but faces a legal challenge with the SEC over its approval. Launched in March 2019, the Ethereum Trust now has an AUM of $4.96 billion, Grayscale’s web portal shows.
Grayscale also plans to launch an ethereum futures ETF based on cash-settled CME futures contracts with regulatory approval. David LaValle, Grayscale’s global head of ETFs, said Monday that the 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.”
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