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Grayscale and NYSE Arca partner to convert Ethereum Trust into Ether ETF

Published

1 year ago

October 3, 2023

Grayscale Investments has announced a significant move in collaboration with NYSE Arca. The two entities have jointly filed Form 19b-4 with the United States Securities and Exchange Commission (SEC) to transform the Grayscale Ethereum trust into a spot Ether exchange-traded fund (ETF).

This filing follows the SEC’s recent approval of the first Ethereum futures ETFs, marking a pivotal moment for the cryptocurrency industry.

Grayscale is a digital asset management firm that offers investment products that give exposure to cryptocurrencies like Bitcoin and Ethereum. It’s also known as the world’s leading crypto asset manager by assets under management.

Some of its investment products include the Grayscale Bitcoin Trust, Grayscale Ethereum Trust, Grayscale Litecoin Trust, and the Grayscale Digital Large Cap Fund.

Grayscale’s Ethereum trust, ETHE, was launched in March 2019 and voluntarily became an SEC reporting entity by October 2020.

It currently stands as the world’s largest Ether investment vehicle, overseeing almost $5 billion in assets, equivalent to 2.5% of the total Ether supply in circulation.

Over the years, numerous ETF applications have been submitted for Bitcoin and Ether. The SEC has approved Bitcoin Futures ETFs but has not yet approved any Spot Bitcoin ETFs.

Launch of Ether ETFs

Recently, the first Ether Futures ETF was launched. Grayscale is now pursuing the transformation of its Ether Trust into a Spot Ether ETF.

Michael Sonnenshein, CEO of Grayscale Investments, highlights the significance of transitioning ETHE into an ETF, seeing it as a pivotal moment to enhance Ethereum’s regulatory presence in the United States.

Additionally, David LaValle, Grayscale Global Head of ETFs, said that the filing is a vital milestone for the company 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.”