Grayscale Ethereum Trust submits SEC filing to separate ETF

Following the approval of its first Ether (ETH) futures exchange-traded fund (ETF), Greyscale Investments is looking to convert the Greyscale Ethereum Trust into an Ether exchange-traded fund (ETF).

New York Stock Exchange Arca filed for bankruptcy on October 2 with the United States Securities and Exchange Commission (SEC). Greyscale's existing trust is invested in Ether futures contracts with indirect exposure to ETH, but the spot ETF invests. The main property itself.

@Grayscale Registers to Convert Grayscale Ethereum Trust to Spot ETF $ETHE

Thanks for your continued support — our team is just getting started! https://t.co/3nNtfe4Nns

— Sonnenshein (@Sonnenshein) October 2, 2023

Grayscale CEO Michael Sonnenschein announced the move on X (formerly Twitter) and highlighted the firm's desire to offer conventional investment products that offer exposure to cryptocurrency assets.

As we file to convert ETHE to EEF as a natural next step in the product's evolution, we recognize this as an important time to bring Ethereum further into the US regulatory perimeter.

The Grayscale Ethereum Trust was launched in March 2019 and became an SEC reporting company in October 2020, giving the public direct insight into the cryptocurrency investment vehicle's performance.

At the time of writing, Ethereum Trust is valued at $4.9 billion and accounts for around 2.5% of ETH. Grayscale also reported that 250,000 investor accounts were compromised.

Grayscale has indicated that it remains committed to taking its cryptocurrency products through a “proposed four-stage life cycle” that culminates in the transition to ETFs. The platform currently offers 17 different cryptocurrency investment products.

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