Grayscale Applies to Launch Ethereum Futures ETF


Grayscale Investments sent to SEC proposal to launch an exchange-traded fund based on those traded on CME Ethereum futures. The Wall Street Journal writes about this.

The announcement is subject to the Securities Act of 1933, which regulates commodities and spot Bitcoin ETFs.

Grayscale previously filed for a similar product under the Investment Company Act of 1940, under which most exchange-traded funds are registered.

In September, digital asset manager Hashdex submitted a proposal to the SEC to launch an Ethereum-based ETF and CME-traded futures based on the second-largest cryptocurrency. The document is based on the Securities Act of 1933.

Grayscale has taken the initiative to launch an exchange-traded fund based on Ethereum futures after the court granted its petition for conversion GBTC into a spot Bitcoin ETF.

The appeals court agreed that the agency never explained why spot and futures exchange-traded funds based on the first cryptocurrency are significantly different.

In June 2022, the organization filed a lawsuit against the regulator for refusing to convert GBTC into an ETF. The company submitted a proposal to the SEC to convert the product in October 2021.

Earlier, JPMorgan analysts said that the court’s verdict in the Grayscale case could bring closer the final approval of a spot exchange-traded fund based on digital gold.

As a reminder, Grayscale asked the SEC to “expeditiously” approve a spot Bitcoin ETF.

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