Grayscale’s submission of an application for an ether futures ETF has generated significant attention, indicating a possible change and prompting inquiries regarding the future of their Ethereum Trust.
Grayscale Investments has submitted an application for a novel exchange-traded fund (ETF) designed to monitor ether futures as it seeks approval from the Securities and Exchange Commission (SEC).
Firstly, this application introduces the possibility of transitioning to holding spot ether in the future, contingent upon the SEC’s growing acceptance of this concept.
Secondly, it raises inquiries concerning Grayscale’s long-term strategies for transforming its Ethereum Trust (ETHE), which currently holds approximately $5 billion in assets, into an ETF.
It is noteworthy to distinguish between the filings under the ’33 Act and ’40 Act.
Grayscale’s choice to file under the Securities Act of 1933, the same regulatory framework utilized for commodities and spot bitcoin ETFs, reflects the SEC’s prior endorsement of bitcoin futures ETFs registered under both acts.
This suggests a certain level of regulatory comfort with bitcoin futures.
Furthermore, the Brazilian investment firm Hashdex recently submitted an ETF application linked to ether futures under the ’33 Act.
Additionally, a dozen other asset management firms have filed for ETFs related to ether futures under the ’40 Act, with the potential for these to enter the market in October, subject to approval.
