Grayscale Files for Ethereum Futures ETF Amidst Broadening Digital Currency Investments
Summary:
Grayscale, a digital currency investment firm, has filed for a new Ethereum futures exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC). The filing explains plans to retain Ether futures contract holdings with an unchanging expiration profile and no need for an Ether custodian. Grayscale currently offers two Ethereum futures contracts. This comes amid recent applications for an Ether futures ETF from other firms, and Grayscale's partial victory against the SEC to convert its over-the-counter Bitcoin Trust into a listed Bitcoin ETF.
Grayscale, a company specializing in digital currency investment, has become the latest to submit an application to the Securities and Exchange Commission (SEC) to create a new Ethereum futures exchange-traded fund (ETF). On September 19, Grayscale formally lodged a proposal to list and trade the Grayscale Ethereum Futures Trust ETF shares, relying on the New York Stock Exchange Arca Rule 8.200-E. The ETF, governed by Grayscale Advisors, aims to abide by the regulations outlined in the Securities Exchange Act of 1934 and the rule alterations proposed by NYSE to the SEC.
The document mentions the sponsor, Grayscale Advisors, is transitioning towards becoming a registered commodity pool operator and establishing itself as a National Futures Association member. Lastly, the report contends that Grayscale Advisors is working in association with Videnct Advisory to function as the trust’s commodity trading advisor.
The Grayscale Ethereum Futures Trust has plans to retain its Ether futures contract holdings with an approximately unchanging expiration profile, and will never keep futures positions until cash settlement. The filing goes on to state that it will not necessitate an Ether custodian due to the type of Ether futures contracts included in the ETF.
Currently, Grayscale provides two Ethereum futures contracts: one is a 50 Ether contract, referred to as "ETH contracts," and the other is a contract representing 0.1 Ether, called the Micro Ether Futures or MET contracts.
Recently, Valkyrie, a digital asset management firm, also submitted an application for an Ether futures ETF to the SEC, which was followed by filings from a number of other companies. Bloomberg reported on August 17 that the SEC was about to greenlight the first ETFs built on Ether futures, resulting in positivity within the Ethereum marketplace.
Previous month, despite the SEC rejecting its Grayscale Bitcoin Trust (GBTC) application, Grayscale managed to win a significant, albeit partial battle against the SEC in its attempt to transform its over-the-counter GBTC into a Bitcoin exchange-traded fund. Even though this victory does not guarantee the eventual listing of a Grayscale Bitcoin ETF, the community's response has been overwhelmingly positive.
Published At
9/20/2023 1:02:51 PM
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