Grayscale Files to Convert Ethereum Trust to ETF with the SEC
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Grayscale, the world’s foremost crypto asset manager, has embarked on a transformative journey to convert its Ethereum Trust (ETHE) into an exchange-traded fund (ETF). This strategic maneuver holds the potential to usher in heightened transparency and liquidity for Ethereum, the second-largest cryptocurrency.
📣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
🧵(1/4) https://t.co/IAHDHTdeqp— Grayscale (@Grayscale) October 2, 2023
ETHE, a fund predominantly composed of ether, Ethereum’s native token, has already garnered a staggering $5 billion in assets under management, firmly securing its place as the world’s largest ether investment vehicle.
By transitioning ETHE into an ETF, Grayscale is striving to offer investors a more streamlined and cost-efficient pathway to engage with the Ethereum ecosystem. ETFs, renowned for their lower fees, robust liquidity, and rigorous regulatory scrutiny, are poised to enhance accessibility for cryptocurrency enthusiasts.
Michael Sonnenshein, the CEO of Grayscale, emphasized the company’s unwavering commitment to providing investors with “transparent and regulated access to crypto through product structures that are familiar.” He noted that transforming ETHE into an ETF represents “the natural next step in the product’s evolution” and marks a pivotal moment in expanding Ethereum’s footprint within the U.S. regulatory framework.
Grayscale Also Awaiting Conversion of Bitcoin Trust to ETF
Grayscale’s aspirations extend beyond Ethereum, as they eagerly await approval from the U.S. Securities and Exchange Commission (SEC) to convert their Bitcoin Trust (GBTC) into an ETF. GBTC currently stands as the world’s largest Bitcoin investment product, boasting over $30 billion in assets under management.
However, the SEC has thus far refrained from greenlighting any spot-based crypto ETFs, despite a deluge of applications from various fund managers. The SEC has expressed concerns regarding the crypto market’s inherent risks and challenges, including potential fraud, market manipulation, cyber threats, opacity, and regulatory issues.
Grayscale has emerged as a key player in the evolving landscape of crypto ETFs, recently securing a significant legal victory that could shape the destiny of these investment vehicles. This landmark ruling has set essential guidelines for regulators, paving the way for further advancements in the crypto industry.
