Grayscale Investments, a digital asset management firm, has announced its intention to convert the Grayscale Ethereum Trust (OTCQX: ETHE) into an Ethereum spot ETF. This move comes amidst the race for the launch of cryptocurrency exchange-traded funds (ETFs), particularly focusing on Bitcoin and Ethereum. The NYSE Arca has already submitted the corresponding Form 19b-4, the request, to the US Securities and Exchange Commission (SEC). This request follows the SEC’s recent authorization of the first Ethereum futures ETFs. Earlier today, VanEck and ProShares launched ETFs based on ETH futures.
“As an unwavering commitment at Grayscale, we aim to offer investors transparent and regulated access to cryptocurrencies through familiar product structures,” said Grayscale CEO Michael Sonnenshein. Sonnenshein emphasized that with this conversion request, Grayscale acknowledges the significance of this moment, as it helps bring Ethereum further into the regulatory perimeter of the US.
In their announcement, Grayscale stated that they remain dedicated to guiding each of their digital asset products through the intended four-phase life cycle. The fourth and final phase is the conversion into an ETF.
The Grayscale ETHE product was introduced to the market in March 2019, and two months later, it received a public quotation. Today, it stands as the world’s largest Ether investment vehicle. According to Grayscale, ETHE has nearly $5 billion in assets under management, representing 2.5% of all circulating Ether. The company also highlighted that investors trade millions of dollars worth of shares daily, and over a quarter of a million US investor accounts hold shares of the product.
“This registration is another significant milestone as Grayscale continues to build its premier ETF team, product suite, and resources – serving investors as a globally respected asset manager with unparalleled cryptocurrency expertise,” commented David LaValle, Grayscale’s Global Head of ETFs.