In the race for the launch of cryptocurrency exchange-traded funds (ETFs), with Bitcoin and Ethereum taking center stage, digital asset manager Grayscale Investments announced on Monday (02) that it intends to convert the Grayscale Ethereum Trust (OTCQX: ETHE) into a spot Ethereum ETF.
NYSE Arca has already submitted Form 19b-4, corresponding to the application, to the U.S. Securities and Exchange Commission (SEC). The application comes shortly after the SEC authorized the first Ethereum futures ETFs. Earlier today, VanEck and ProShares launched ETFs based on ETH futures.
“Grayscale’s unwavering commitment is to offer investors transparent and regulated access to cryptocurrencies through familiar product structures,” said Grayscale CEO Michael Sonnenshein.
Sonnenshein emphasized that by requesting this change, Grayscale recognizes it as an important moment. It helps to bring Ethereum further into the U.S. regulatory perimeter.
Grayscale in the race for spot ETH ETF
In the announcement, Grayscale stated that it remains committed to guiding each of its digital asset products through the intended four-phase life cycle. The fourth and final phase is the conversion to an ETF.
The Grayscale ETHE product entered the market in March 2019, and two months later, the product received a public quotation. Today, the Trust is the largest Ether investment vehicle in the world. According to the manager, ETHE has a total of nearly $5 billion in assets under management. This represents 2.5% of all Ether in circulation.
As the company pointed out, investors trade millions of dollars in shares daily. Additionally, over a quarter of a million U.S. investor accounts hold shares of the product.
“This registration is another important milestone as Grayscale continues to build its leading ETF team, product suite, and resources – serving investors as a globally respected asset manager with unparalleled cryptocurrency expertise,” said David LaValle, Global Head of ETFs at Grayscale.