Grayscale submits SEC filing to convert Ethereum Trust to spot ETF

Following the approval of the first Ether (ETH) futures exchange-traded fund (ETF), Grayscale Investments is looking to convert its Grayscale Ethereum Trust to a spot Ether exchange-traded fund (ETF). 

The New York Stock Exchange Arca filed for the conversion with the United States Securities and Exchange Commission (SEC) on Oct. 2. Grayscale’s existing trust invested in Ether futures contracts as an indirect means of exposure to ETH, but a spot ETF will invest in the underlying asset itself. 

— Sonnenshein (@Sonnenshein) October 2, 2023

Grayscale CEO Michael Sonnenshein announced the move on X (formerly Twitter) and highlighted the firm’s intent to provide conventional investment products offering exposure to cryptocurrency assets:

“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.”

The Grayscale Ethereum Trust was launched in March 2019 and went on to become an SEC reporting company in October 2020, giving the public direct insight into the performance of its cryptocurrency investment vehicle.

At the time of writing, the Ethereum Trust is valued at $4.9 billion and accounts for around 2.5% of circulating ETH. Grayscale also reports that 250,000 investor accounts have exposure to the trust.

Grayscale also indicated that it remains committed to taking its cryptocurrency products through an “intended four phase lifecycle” ending with a conversion to an ETF. The platform currently offers 17 different cryptocurrency investment products.

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