Grayscale Seeks SEC Approval for Ethereum Futures ETF

Grayscale Files For ETH Futures ETF

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.

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Questions Surrounding ETHE

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.