Grayscale moves closer to launching a Spot Ethereum ETF, filing Form S-3 to convert its Ethereum Trust, and bridging crypto investments with traditional markets.
Grayscale, an industry-leading asset manager in the cryptocurrency sector, has made substantial progress toward establishing a Spot Ethereum ETF. The organization recently submitted Form S-3 to the U.S. Securities and Exchange Commission (SEC) to transform its Ethereum Trust into a Spot Ethereum ETF.
In contrast to other Ethereum ETF issuers, Grayscale’s Ethereum Trust has already obtained registration from the Commission. The asset manager is, therefore, not required to consider the S-1 filing. In the interim, the submission of Form S-3 constitutes a critical milestone in Grayscale’s strategic approach.
Furthermore, it equips the organization with every essential document required for the SEC to evaluate its application. Furthermore, Grayscale filed Form S-1 about a miniature Ethereum ETF, denoted by the symbol “ETH.”
This action follows Grayscale’s March filing for a micro Bitcoin ETF with the symbol “BTC,” awaiting SEC approval. In addition, Grayscale is presently engaged in proactive efforts to secure a Spot Ethereum ETF listing on the NYSE Arca exchange for its Ethereum Trust.
The asset manager is responsible for Grayscale’s Form S-3 submission and NYSE Arca’s Form 19b-4 filing. Subsequent to NYSE Arca’s application effectiveness and Form S-3 registration, Ethereum Trust shares would be issued under the ticker symbol “ETHE,” should they be approved.
Even with this proactive stance, the SEC has postponed the processing of applications from Grayscale and other participants in the industry, such as Franklin Templeton. Speculation abounds concerning the final result, with issuers’ sentiments predominantly inclined towards pessimism. Additionally, some were concerned about the SEC staff‘s lack of significant participation.
They perceive it as a possible indicator that denial about the May 23rd deadline is imminent. Others are less sanguine than those who continue to issue ETFs on Ethereum and Bitcoin, citing parallels between the two situations as justification. They indicate that the complexities associated with Ethereum staking, which remain unresolved, may impede the approval process.
Netizens also speculated about the position of SEC Chairman Gary Gensler, believing he would not sanction Spot Ethereum ETFs and would instead devise new denial grounds. Grayscale could even file a re-litigation, resulting in the same outcome as the initial petition. After settling the initial legal dispute, the SEC approved the Spot Bitcoin ETFs.
