Grayscale Files With the SEC To Transform Ether Trust Into Spot Ether ETF

• Michael Sonnenshein, CEO of Grayscale, made the announcement on Twitter.
• The Ethereum Trust holds around 2.5% of all ETH in circulation.

With the recent green light given to the first Ether futures ETF, Grayscale Investments is trying to transform its Grayscale Ethereum Trust into a spot Ether ETF.

On October 2, the New York Stock Exchange Arca submitted a conversion application to the U.S. SEC. Previously, Grayscale’s trust had invested in Ether futures contracts to get exposure to ETH indirectly; however, a spot ETF would invest directly in ETH.

Exposure to Crypto Assets

Michael Sonnenshein, CEO of Grayscale, made the announcement on Twitter and emphasized the company’s intention to provide traditional financial products with exposure to cryptocurrency assets.

The CEO stated:

“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.”

Moreover, Grayscale Ethereum Trust began trading in March 2019, and the business filed with the SEC by October 2020, allowing investors to see how their cryptocurrency investment vehicle is doing firsthand. Also, the Ethereum Trust holds around 2.5% of all ETH in circulation and has a market cap of $4.9 billion. According to Grayscale, the trust is exposed to 250,000 investor accounts.

Grayscale also stated its continued dedication to the “intended four phase lifecycle” for its cryptocurrency products, which would culminate in an exchange-traded fund (ETF) conversion. There are presently seventeen distinct crypto investing options available on the platform.

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