A new cryptocurrency exchange-traded fund (ETF) has been requested from the U.S. Securities and Exchange Commission by Grayscale Investments. This one would be an Ethereum futures ETF, as opposed to the flurry of Bitcoin spot ETFs that are still pending approval from the regulator.
The fund would only deal in futures, according to documents filed by the company on Tuesday, and would “not transact in Ether and will not be required to retain an Ether custodian.”
The asset manager’s application comes after the SEC’s decision to prevent Grayscale from transforming its Bitcoin trust into a spot ETF was overturned by a federal judge last month, giving Grayscale a victory over Wall Street’s top regulator.
As Grayscale waits for the SEC to approve its Bitcoin ETF, it is now looking for clearance for an Ethereum futures ETF.
A Bitcoin futures ETF, which enables investors to wager on the future value of digital assets, was first approved by the SEC in 2021. These investment vehicles do not keep cryptocurrencies; instead, they track their price.
The SEC is presently considering many applications for spot crypto ETFs, including one from BlackRock, the greatest asset management firm in the world. Investors are keen on these products.
Traditional investors could access the asset more securely with the help of a cryptocurrency ETF. A Bitcoin ETF would enable investors to purchase shares that track the price of the underlying asset without having to worry about securing and storing their Bitcoin holdings. ETFs are investment vehicles that enable users to purchase shares that track the price of an underlying commodity.
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