Crypto asset manager Grayscale Investments has filed with the SEC to convert its Grayscale Ethereum Trust (ETHE) into a spot Ether ETF in the wake of the first futures-based Bitcoin ETF approval.
On October 3, Grayscale submitted an application to change the existing Ethereum Trust into an ETF that directly holds Ether rather than ETH futures contracts.
The move aims to provide conventional investors fuller exposure to cryptocurrencies through familiar ETF products amid growing regulatory comfort with digital assets.
Expanding Crypto Access Through ETF Wrappers
In a tweet announcing Grayscale’s SEC application, CEO Michael Sonnenshein emphasized the firm’s commitment to enabling mainstream investors to gain regulated crypto exposure via trusts and ETFs.
The Grayscale Ethereum Trust first began trading in 2019 and has over $4 billion in assets under management, offering exposure to nearly 3% of all Ether in circulation.
If approved, the ETHE conversion would mark a major milestone as the first spot Ether ETF available to retail U.S. investors. Last week saw the launch of the first Bitcoin futures ETF.
Eyes on Spot Bitcoin and Ether ETF Approvals
Grayscale asserted the Ethereum Trust transition follows the “natural evolution” of its crypto investment vehicles culminating in ETF conversions.
The company outlined a four-phase product lifecycle starting with private funds, leading to public over-the-counter offerings, then SEC reporting, and finally ETF status.
While the SEC has allowed crypto futures ETFs, spot Bitcoin and Ether options remain under review despite heavy industry lobbying. Approvals could significantly expand mainstream crypto adoption.
Grayscale continues positioning itself at the forefront of regulated crypto investing access. Its bold ETF application underscores growing industry optimism that direct cryptocurrency ETFs are nearing reality after years of setbacks.