May 29, 2024
Grayscale's bold move: Transforming Ethereum Trust into an ETF
Latest Cryptocurrency News

Grayscale CEO Announces Strategic Move to Launch Ethereum Spot ETF

After the approval of the inaugural Ether futures exchange-traded fund (ETF), Grayscale Investments is now seeking to transform its Grayscale Ethereum Trust into a spot Ether exchange-traded fund (ETF).

The New York Stock Exchange Arca has submitted a request for the conversion to the United States Securities and Exchange Commission (SEC) on October 2. Grayscale’s existing trust has been invested in Ether futures contracts, providing investors with indirect exposure to ETH. However, a spot ETF will directly invest in the underlying asset itself. Grayscale’s CEO, Michael Sonnenshein, announced this strategic move on social media and emphasized the company’s commitment to offering traditional investment products that provide exposure to cryptocurrency assets. He stated that as Grayscale initiates the process to convert ETHE into an ETF, the logical progression for the product, they view this as a significant milestone in bringing Ethereum further within the regulatory framework in the United States.

The Grayscale Ethereum Trust was introduced in March 2019 and was granted the status of an SEC reporting company in October 2020, offering the public transparent access to the performance of its cryptocurrency investment vehicle.

As of the current moment, the Ethereum Trust is valued at $4.9 billion, representing approximately 2.5% of the total circulating ETH. Grayscale also reports that there are 250,000 investor accounts with exposure to the trust.

Additionally, Grayscale has expressed its ongoing commitment to following a four-phase lifecycle for its cryptocurrency products, ultimately leading to their conversion into ETFs. Presently, the platform provides 17 distinct cryptocurrency investment products.

Image by freepik

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