[NEWS] Grayscale applies to convert Ethereum Trust into a physical ETF

Grayscale, the world's largest cryptocurrency management company, announced on the 2nd that it has filed an application to convert its Ethereum Trust "Grayscale Ethereum Trust (ETHE)" into an Ethereum spot ETF.

According to Grayscale, this application follows the SEC's approval of an Ethereum Futures ETF. The application was submitted to the SEC with the cooperation of the US stock exchange NYSE Arca.

Grayscale's existing mutual funds have attracted demand from investors as an indirect means of investing in Ethereum (ETH). By converting to a spot ETF, investors will be able to invest directly in physical Ethereum.

Grayscale CEO Michael Sonnenshein said in the announcement, "Grayscale's commitment is to provide investors with transparency and access to crypto assets," indicating that now is the perfect time to convert the Ethereum Trust into an ETF.

He continued, "Converting the Ethereum Trust into a physical ETF is a natural evolution of our service and an important opportunity to treat Ethereum as a regulated entity in the United States."

The Ethereum Investment Trust was established in March 2019 and went public in May of the same year. Currently, the trust is the world's largest Ethereum investment product, with assets under management of approximately $5 billion (approximately 750 billion yen). This is approximately 2.5% of the Ethereum in circulation. According to Grayscale, it is held by approximately 250,000 investors.

David LaValle, Grayscale's global head of ETFs, said in the announcement that "this application is the most important milestone in history," and emphasized his intention to work with NYSE Arca to realize an Ethereum physical ETF.

Currently, BlackRock, the world's largest asset management company, and others have applied for a Bitcoin physical ETF, but the SEC has postponed its decision. U.S. courts and prominent U.S. lawmakers have criticized the SEC for its wrong response in not allowing spot ETFs when it has already approved futures ETFs.

Amid this, the SEC recently approved an application for an Ethereum futures ETF. The SEC lost a pending lawsuit against Grayscale, and it is said that it is only a matter of time before a spot ETF is approved.

Grayscale wants to be the first in the world to offer an Ethereum spot ETF. It is unlikely to be approved in the short term, but as the world's largest crypto asset management company, Grayscale wants to secure its position as the first corporate entity to offer an Ethereum spot ETF.

Reference:Announcement
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