ETH
by BSCN
September 20, 2023
Meanwhile, the reasons behind Grayscale's previous application for an Ethereum Futures ETF under the Investment Company Act of 1940 remain unclear.
Grayscale Investments has made an intriguing move by filing for a new exchange-traded fund (ETF) that tracks ether futures, as per The Wallstreet Journal.
The significance of this filing goes beyond creating an Ethereum futures ETF. It also suggests that spot ether will be held once the Securities and Exchange Commission (SEC) becomes more comfortable with it.
It could begin a pivotal moment in the institutional adoption of cryptocurrencies since spot assets provide more direct exposure to the underlying asset.
Grayscale's Ethereum Trust (ETHE) currently holds approximately $5 billion in assets. The filing for an ether futures ETF raises questions about Grayscale's long-term plans for ETHE.
It's essential to differentiate between the regulatory acts under which Grayscale has filed for its ETFs. Grayscale's choice to file under the Securities Act of 1933, the same regulation used for commodities and spot bitcoin ETFs, suggests that the SEC has grown comfortable with bitcoin futures ETFs registered under both acts.
On the other hand, Grayscale filed its earlier application for an Ethereum Futures ETF under the Investment Company Act of 1940, the primary framework for most securities-based ETFs. The reasons behind this distinct filing approach remain somewhat unclear.
Bitcoin futures ETFs have already received registration and approval under both acts, potentially setting a precedent for Ethereum futures ETFs.
Ethereum is trading at $1,637, and the crypto community eagerly awaits Grayscale's ETF filing decision from the SEC.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
Latest News
13h : 8m ago
Weekly Article Recap: 9/30-10/04
October 4, 2024
Coinbase to Delist Non-Compliant Stablecoins in EU by December
October 4, 2024
CryptoPunk 1563 “Sells” for $56M: Real Deal or Flash Loan Stunt?
October 4, 2024
Is Satoshi Nakamoto About to Be Exposed? HBO Documentary Claims to Reveal Bitcoin Creator’s Identity
October 3, 2024
Visa Introduces Tokenized Asset Platform for Fiat-Backed Tokens
October 3, 2024
Lamborghini to Unveil Web3 Platform "Fast ForWorld" With Animoca Brands
October 3, 2024
Crypto Losses in 2024 Soar to $2.11 Billion, Surpassing 2023’s Annual Total: Report
October 3, 2024
Aptos Blockchain Welcomes Franklin Templeton's Tokenized U.S. Government Fund