Grayscale Seeks to Convert Ethereum Trust to Spot ETF

Grayscale, a prominent digital asset management firm, has eyed another product that it seeks to convert into a spot exchange-traded fund. As per the latest turn of events, the firm has submitted an application to convert its Grayscale Ethereum Trust to a spot Ethereum spot ETF. 

Grayscale to Debut Ether Spot ETF?

According to a filing submitted with the United States Securities and Exchange Commission (SEC) on October 2 by the New York Stock Exchange Arca, the firm seeks the conversion of the existing trust, which provides indirect exposure to Ether via futures contracts, into the spot ETF, which will offer direct exposure to spot prices. 

Comments from CEO Sonnenshein 

Grayscale CEO Michael Sonnenshein also announced the developments via his official handle on social media platform X (formerly known as Twitter), while adding:

“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.”

He also added that the investment management firm intends to provide conventional investment products offering exposure to digital assets.

Ethereum Trust

It is crucial to note that the Grayscale Ethereum Trust was first launched in March 2019 and went on to become an SEC reporting company in October 2020. During that time, the fund was one of the first to offer exposure to the world’s second-largest cryptocurrency. Interestingly, at the time of writing, the price of the Ethereum Trust stands at $11.06.

Grayscale vs. the SEC

As reported earlier by TheCoinRise, Grayscale won its court battle against the Securities and Exchange Commission (SEC) over its application for a spot Bitcoin exchange-traded fund (ETF). The court sided with the asset management firm in its ruling. Following the win, the approval of a spot BTC ETF surged significantly. 

The digital asset management firm asked the SEC to approve eight Bitcoin spot ETF applications at the same time.