Grayscale to Convert Ethereum Trust into Spot ETF, Aiming for Direct Crypto Exposure
Summary:
Grayscale Investment plans to convert its Grayscale Ethereum Trust into a spot Ethereum ETF, following the green light for the first Ethereum futures ETF. The move aimed at offering direct exposure to Ethereum rather than through futures contracts was initiated by the New York Stock Exchange Arca and filed with the SEC. Grayscale CEO Michael Sonnenshein underscored the firm's objective to provide mainstream, regulated crypto investment tools. Currently, the Ethereum Trust holds a valuation of $4.9 billion, equating to roughly 2.5% of circulating ETH.
Grayscale Investment is set to transform its Grayscale Ethereum Trust into a spot Ethereum ETF, following the approval of the first Ethereum (ETH) futures exchange-traded fund (ETF). The proposal for the change was lodged with the United States Securities and Exchange Commission (SEC) by the New York Stock Exchange Arca on October 2. The initial Trust provided indirect ETH exposure via Ethereum futures contracts, while the upcoming spot ETF will invest directly in the base asset. Grayscale relayed this news of the conversion in a tweet.
The announcement of the transition was made by Grayscale CEO Michael Sonnenshein on X (known before as Twitter). He emphasized the firm's commitment to deliver mainstream investment products that give access to digital asset classes. Sonnenshein stated that turning ETHE into an ETF is a logical progression, and they view this as a key opportunity to bring Ethereum further into the U.S.' regulatory framework.
The Grayscale Ethereum Trust started in March 2019 and became an SEC reporting entity in October 2020. This position allowed the general public to have a direct look at how its crypto investment vehicle performs. As it stands, the Ethereum Trust holds a worth of $4.9 billion, representing about 2.5% of ETH in circulation.
Published At
10/2/2023 12:54:27 PM
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