Grayscale has filed for a new Ethereum futures exchange-traded fund (ETF), the Wall Street Journal reported on September 19.
According to that report, Grayscale filed under the Securities Act of 1933. The filing differs from Grayscale’s previous attempts at an Ethereum futures ETF, which it filed under the Investment Company Act of 1940.
The Wall Street Journal noted that the U.S. Securities and Exchange Commission (SEC) has approved a number of Bitcoin futures ETFs under both the 1933 and 1940 laws. Spot Bitcoin ETFs, none of which have been approved, have been filed under the law. 1933.
The fact that the SEC approved certain previous Bitcoin futures ETFs as of October 2021 – combined with more general optimism surrounding cryptocurrency ETFs – could make Ethereum futures ETFs a viable venture for asset managers.
Several asset managers have already jumped on the trend. In recent weeks, Volatility Shares, Bitwise, ProShares, VanEck, Roundhill and Valkyrie Investments have all signed up for Ethereum futures ETFs. The Wall Street Journal identified Hashdex as another applicant; several other companies bring the number of applicants to at least 12.
Grayscale is also pursuing a Bitcoin spot ETF
Grayscale’s attempts to get its hands on an ETF of any type are especially notable as the company plans to convert its existing GBTC fund into a spot Bitcoin ETF. Although the SEC initially rejected Grayscale’s filing in 2022, Grayscale won a partial legal victory in August that will likely force the SEC to review the filing.
As noted by the Wall Street Journal, judges in the DC Court of Appeals said Grayscale’s proposed ETF conversion is “materially similar” to other previously approved Bitcoin futures ETFs — seemingly a nod in the company’s favor.
But despite widespread optimism, this ruling won’t necessarily require the SEC to approve Grayscale’s proposed ETF. The SEC simply needs to review the application.
Other companies are also pursuing Bitcoin spot ETFs that closely follow a much-hyped filing that BlackRock filed in June. Grayscale’s own spot Bitcoin ETF application precedes and differs from BlackRock’s application because it concerns an existing fund.
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