Grayscale Has Filed 19b-4 to Convert Grayscale Ethereum Trust to a Spot ETF

Grayscale Investments and NYSE Arca have applied for permission from the U.S. Securities and Exchange Commission (SEC) for the transformation of the Grayscale Ethereum Trust (ETHE) into a spot Ethereum exchange-traded fund (ETF) following the approval of the first Ether futures ETF. 

Filing of New Request

On October 2, the New York Stock Exchange Arca submitted a conversion request to the Securities and Exchange Commission (SEC) of the United States. A spot ETF will invest in the underlying asset instead of Grayscale’s previous trust, which invested in Ether futures contracts as a secondary way to get exposure to ETH.

Michael Sonnenshein, the CEO of Grayscale, announced X (formerly Twitter), stressing the company’s intention to offer conventional investment products with exposure to cryptocurrency assets.

He declares, “As we file to convert ETHE to an ETF, the natural next step in the product’s evolution, we recognize this as an important moment to bring Ethereum even further into the U.S. regulatory perimeter.” 

Grayscale’s Win Over SEC Lawsuit

Grayscale Investments recently won a big legal battle against the SEC, a crucial step toward allowing cryptocurrency exchange-traded funds (ETFs). This ruling isn’t just about Grayscale’s Bitcoin Trust (GBTC); it sets rules for how regulators should handle future crypto ETF applications. Gautam Chhugani, a digital asset expert at Bernstein, highlighted how important this is for the entire crypto industry.

He said that the crypto market can be pretty bumpy. For instance, when Grayscale had good news, Bitcoin’s price shot up by 6%, but it quickly fell when the SEC delayed a Bitcoin ETF decision. This shows that the crypto market is still pretty shaky and unstable.