Digital asset management giant Grayscale Investments has officially filed for a new Ethereum (ETH) Futures Exchange Traded Fund (ETF) on September 19, 2023, as reported by the Wall Street Journal (WSJ).
This new filing was named the Grayscale Ethereum Futures ETF (ETHG) and was filed under the Securities Act of 1933, unlike the former one that was filed under the Investment Company Act of 1940.
Grayscale’s Second Shot at Ethereum Futures ETF
This isn’t Grayscale’s first attempt at an Ethereum ETF. Back in May 2023, they applied for a spot Ethereum ETF, but the Securities and Exchange Commission (SEC) hasn’t given it the green light yet. However, Grayscale’s determination shines through as they now try their luck with Ethereum futures.
Notably, the Grayscale Ethereum Futures ETF won’t directly hold Ethereum tokens. Instead, it will track the performance of Ethereum futures contracts. These contracts represent the right to buy or sell Ethereum at a future date, providing investors with exposure to Ethereum’s price movements without holding the actual cryptocurrency.
The SEC has already approved Bitcoin Futures ETFs under both the Securities Act of 1933 and the Investment Company Act of 1940. This history of approval has set a positive tone for the crypto industry, and it seems Ethereum futures ETFs could be next in line for regulatory acceptance.
Meanwhile, Grayscale isn’t alone in this ambition. Several other asset management firms, including Volatility Shares, Bitwise, ProShares, VanEck, Roundhill, and Valkyrie Investments, have also thrown their hats into the Ethereum futures ETF ring. The Wall Street Journal even identified Hashdex as another applicant, bringing the total number of firms vying for a piece of this market to at least 12.
Grayscale’s Bitcoin Spot ETF Pursuit
The company’s interest in ETFs doesn’t stop with Ethereum. They’re also in the process of converting their existing Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. Although the SEC initially rejected this application in 2022, a recent ruling by the D.C. Court of Appeals suggests a possible favorable outcome for Grayscale.
The court deemed the proposed ETF conversion as “materially similar” to previously approved Bitcoin futures ETFs, opening the door for further review.
However, with the potential approval of Ethereum futures ETFs on the horizon, institutional investors and market participants are eagerly watching the SEC’s decision and how it could potentially drive further crypto adoption and growth.
As of the time of writing, the price of Ethereum stands at $1,635, a decline of a mere 0.27% over the last 24 hours. Ether has surged by 2.26% in the past seven days.