SEC Acknowledged Receipt of Grayscale’s Application to Convert Ethereum Spot ETF

Grayscale Ethereum Trust

The US Securities and Exchange Commission (SEC) has acknowledged Grayscale Investments’ application to transform its Grayscale Ethereum Trust (ETHE) into a spot Ethereum exchange-traded fund (ETF).

This was confirmed by Nate Geraci, president of The ETF Store. The proposed conversion of the $4.8 billion ETHE trust into an SEC-registered ETF could offer a pathway for mainstream investors to access Ethereum’s native token, Ether, without directly holding cryptocurrencies. Currently, ETHE is traded over the counter as a private trust.

An SEC filing reveals that NYSE Arca, the platform set to list the proposed ETF, submitted the application for Grayscale’s spot Ether ETF on October 2. The goal is to convert Grayscale’s existing Ethereum trust into an ETF that directly holds Ether, as opposed to using futures contracts.

This development follows the SEC’s approval of several Bitcoin futures ETFs in 2021 and more recently, Ethereum futures ETFs. However, the SEC has not yet given the green light to any spot crypto ETFs that hold digital assets directly.

The crypto community hopes that transforming existing trusts like ETHE into SEC-registered ETFs will broaden digital asset investment opportunities for a wider range of investors. While ETFs face more stringent regulations compared to trusts, they are generally more accessible for both retail and institutional investors.

The SEC will now commence a formal review process for Grayscale’s Ethereum ETF application, and a final decision is expected to take several months. This decision holds significance for crypto investors as it could shape the trajectory of digital assets moving further into the investment mainstream.

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Chi Do
Chi Do
Chi Do is a content writer at CoinMinutes, responsible for creating most of the content on the website, including news related to Bitcoin (BTC), Ethereum (ETH), Blockchain, Decentralized Finance (DeFi), and more. With a keen interest in cryptocurrencies since the 2020s, Chi has acquired extensive experience and knowledge in this field. Chi holds a Bachelor's degree in communication from Academy of Journalism and Communication in Vietnam.

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