Aaryamann Shrivastava
FXStreet
- Grayscale submitted an SEC filing to turn Ethereum trust worth around $4.9 billion into an ETF
- The market has seen the launch of the first ETH futures by VanEck on Monday.
- The asset manager is already fighting the SEC in court over its Bitcoin Trust's conversion into an ETF.
Grayscale is jumping on the Ethereum ETF hype that has gripped the market for a while now. Amidst the disheartening announcements made by the Securities and Exchange Commission (SEC) regarding spot Bitcoin ETFs, ETH Futures ETFs are observing a much more favorable environment.
Grayscale eyes Ethereum ETF
Grayscale announced on Monday that the asset management firm filed an application with the SEC to convert the Grayscale Ethereum Trust (ETHE) into a spot Ethereum ETF. The filing came in following the positive reaction noted by the regulatory body over the past couple of days concerning the barrage of Ethereum Futures exchange-traded funds (ETF) filings.
Amidst the many firms that filed for ETH ETFs, VanEck is set to launch the first fund this week on October 2 while others await confirmation from the SEC. The rush of approval was the result of the regulatory body's intent to green-light the filings before a potential US government shutdown.
Grayscale Ethereum Trust currently accounts for about 2.5% of the entire supply of ETH in circulation, valued at about $5 billion. However, unlike the rest of the ETH ETF filings noted towards the end of September, Grayscale intends to convert ETHE into a spot ETF and not a Futures ETF.
We’re proud to announce that @NYSE Arca has filed Form 19b-4 with the SEC to convert Grayscale Ethereum Trust $ETHE to a spot #Ethereum ETF. https://t.co/IAHDHTdeqp
— Grayscale (@Grayscale) October 2, 2023
(1/4) https://t.co/IAHDHTdeqp
This might be an issue for the asset management firm as approving spot ETFs has been a nightmare for applicants, given the SEC's strong stance against them. Earlier this week, a barrage of spot Bitcoin ETFs faced a delay in receiving an official decision from the Commission. Among the applicants were the likes of BlackRock, Ark Invest, 21Shares and more.
Grayscale is already battling the SEC
The request to convert the Ethereum Trust into a spot ETF is not the first instance of the asset management firm taking the SEC head-on. Back in June 2022, Grayscale filed a lawsuit against the SEC for rejecting the conversion of its Bitcoin Trust (GBTC) into a spot ETF.
Grayscale recently won the lawsuit when a three-judge panel of the District of Columbia Court of Appeals in Washington ruled in favor of the asset manager, stating that the SEC was wrong to reject the application. While the SEC can still appeal the court's decision, no move has been made yet, with the Commission stating it is still studying the ruling.
Thus, it might be difficult for the SEC to reject Grayscale's ETHE spot ETF application as the precedent set might make it challenging for the regulatory body to justify the rejection.
Read more - Grayscale GBTC to ETF approval by US SEC would be a double-edged sword, Bloomberg analysts
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Turn off Solana and win $400,000 - Solana Foundation executive announces offer
Solana has been touted as an Ethereum killer, but as with every blockchain in the crypto market, the network does not come without its fair share of issues. While many who get hacked or exploited deal with the issues after the fact, Solana intends to get a step ahead by making a very lucrative offer to white hat hackers.
Grayscale vs. SEC deadline: Commission faces a midnight Friday deadline to challenge August 29 loss
Grayscale Investments secured a resounding victory in its longstanding case against the US Securities and Exchange Commission in late August. The lawsuit started in October after the firm approached the D.C. Circuit Court pushing to have its Bitcoin Trust converted to an Exchange-traded fund.
Loom Network price hits strong weekly resistance after 32% surge as LOOM ranks high on Korea’s Upbit
Loom Network token is highly bullish, passing as a rather lucrative investment for scalping traders, buying and selling the asset within a short period to make small profits.
Voyager founder charged by CFTC for fraud and by FTC for misleading investors that lost $1 billion
Voyager was among the first crypto companies to collapse and file for bankruptcy in 2022. While the platform has been making efforts to return its customers' assets since then, it looks like the regulatory bodies are not willing to be patient.
Bitcoin: Can BTC bears challenge crypto’s 2023 bull rally?
Bitcoin (BTC) price is at a critical juncture in the weekly time frame, where bulls and bears are battling for control. However, a multi-time-frame analysis shows that BTC is bullish daily and is likely to rally higher.