Grayscale Submits a Bid to Convert Its Ethereum Trust to a Spot ETH ETF
- Grayscale secured a partial victory against the SEC, leading to hopes that the SEC could be forced to approve a spot Bitcoin ETF.
- Several asset managers have filed for approval of a spot ETF, including Invesco and Galaxy Digital.
Asset manager Grayscale Investments has shown interest in converting its Grayscale Ethereum Trust into a spot Ether exchange-traded fund (ETF). The New York Stock Exchange Arca submitted a conversion request to the Securities and Exchange Commission (SEC) of the United States on Monday, October 2.
Grayscale’s filing comes after the first wave of Ethereum ETFs entered the U.S. market. In addition, Greyscale’s Ethereum trust manages approximately $5 billion in assets, making it the biggest ether investment product globally.
Grayscale CEO Michael Sonnenshein said in a statement on Monday:
At Grayscale, our unwavering commitment is to offer investors transparent and regulated access to crypto through product structures that are familiar. 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.
Grayscale is one of the many companies pushing for the SEC’s approval of the spot Bitcoin ETF. However, such demands have yet to find any success.
Interestingly, a significant court win over the SEC in August gave Grayscale and other companies further hope that the regulator may be forced to approve a spot Bitcoin ETF to list on American markets. The SEC denied Grayscale’s request for a spot Bitcoin ETF while approving other futures Bitcoin ETFs. The court ruled that this was “arbitrary and capricious” behavior on the part of the SEC.