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Grayscale Doubles Down on ETH: Revised Filing Hints at Spot Ethereum ETF

Last Updated March 19, 2024 11:57 AM
Teuta Franjkovic
Last Updated March 19, 2024 11:57 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Grayscale resubmitted a filing to convert its Ethereum Trust into a spot ETF listed on NYSE Arca.
  • There is investor demand for a spot Ethereum ETF.
  • The SEC is delaying decisions on approving spot Ethereum ETFs.

Grayscale Investments’ Chief Legal Officer, Craig Salm, revealed  the submission of a revised Form 19b-4 for spot Ether exchange-traded funds.

He said investors were increasingly interested in accessing Ethereum through a spot Ethereum ETF.

Grayscale Pushes for Spot Ethereum ETF with Amended Filing

Grayscale’s move is pivotal in its efforts to uplist its Ethereum Trust to NYSE Arca.

In a March 15 Tweet , Salm said there was investor interest in launching a spot Ethereum ETF. Furthermore, he views ETH ETFs as equally important, and the arguments for them just as compelling, as Bitcoin ones.

He claimed  that investors were both looking for and entitled to access to Ethereum through a spot Ethereum ETF.

Also, recently, Grayscale CEO Michael Sonnenshein committed  to reducing fees for its flagship product following $12 billion outflows. Sonnenshein said that the fee reduction for the Grayscale Bitcoin Trust ETF is anticipated in the near future.

Grayscale Refiles ETH Trust Listing Application Targeting NYSE Arca

In a screenshot tweeted by Salm, Grayscale outlined its intention to list and trade shares of the Ethereum Trust in accordance with NYSE Arca Rule 8.201-E . The latest amendment completely replaces the initial filing. Additionally, the screenshot reveals NYSE Arca anticipates the proposed rule change will not directly or indirectly affect any other existing rules.

Grayscale’s updated filing followed the United States Securities and Exchange Commission (SEC)’s postponement of its decision regarding the Ethereum spot ETF applications from both Grayscale and BlackRock. BlackRock has announced plans to list its ETF on Nasdaq if the SEC approves it.

CCN has previously reported that the American regulator delayed decisions on Ethereum (ETH) ETF applications from both Invesco and Galaxy. Despite these setbacks, some analysts maintain optimism, predicting that the SEC will approve Ethereum ETFs by May.

Senators Challenge Ethereum ETFs, SEC Faces Approval Delays

The anticipated approval of spot Ethereum ETFs, which are expected to positively affect the value of the second-largest crypto, have encountered opposition from American senators Jack Reed and Laphonza Butler. They wrote  to SEC Chairman Gary Gensler, urging the regulator to not approve the ETFs. The senators argue that, besides Bitcoin, no other cryptocurrencies possess the necessary trading volumes or integrity to back Exchange-Traded Products (ETPs).

Last year, Greyscale submitted an application to the American regulatory authorities to convert its over-the-counter (OTC) traded ETH trust, valued at over $10 billion, into a spot ETF. This move follows the company’s successful transition of its Bitcoin trust into a spot ETF, achieved through a court order.

The SEC, mirroring its approach with Bitcoin, has postponed decisions on ETH spot ETF applications. Standard Chartered, a British multinational bank, has predicted the SEC will continue to delay its decisions until eventually granting approval by May 23, the final deadline for the initial batch of ETF applications.

Unlike the situation with Bitcoin ETFs, there has been a noticeable lack of communication between issuers of Ethereum ETFs and the regulatory body, contributing to increased uncertainty and reducing the chances of approval, as per industry experts.

 

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