Grayscale Files To Convert $5 Billion Ethereum Trust Into An ETF

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  • Grayscale Investments has submitted an application to convert its Ethereum Trust into a spot ETF.
  • The Ethereum Trust in question boasts a whopping $5 billion in assets under management.
  • Grayscale previously sought to convert its Bitcoin Trust (GBTC) into a spot BTC ETF.

Asset management giant Grayscale Investments has filed an application with the U.S. Securities and Exchange Commission to have its Ethereum Trust into a spot Ethereum exchange-traded fund (ETF). The application, which was submitted earlier today, comes just days after the securities regulator started approving Ethereum Futures ETF.

Michael Sonnenshein, the man at the helm of Grayscale Investments, took to X (formerly Twitter) earlier today to announce that his firm, along with the New York Stock Exchange (NYSE) Arca, had filed form 19b-4 seeking the trust’s conversion. The Grayscale Ethereum Trust boasts a whopping $5 billion in assets under management (AUM).

“As we file to convert ETHE to an ETF, the natural next step in the product’s evolution, we recognize this as an important moment to bring Ethereum even further into the U.S. regulatory perimeter,” Sonnenshein stated in a press release.

Grayscale initially unveiled the Ethereum Trust in March 2019 and subsequently became an SEC reporting company. The ETH in the trust represents 2.5% of all Ether in circulation. According to the asset manager, the trust’s shares trade millions of dollars in daily volume and boasts more than 250,000 U.S. investor accounts.

Crypto influencer Kaleo responded to Grayscale’s latest development and shared that the spot ETH ETF filing came sooner than he had expected. According to the influencer, the filing signaled “extreme confidence” from Grayscale in their BTC ETF filing. Grayscale previously filed to convert its $21 billion strong Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.

Data from CoinMarketCap showed that ETH gained more than 4% over the past 24 hours. At the time of writing, Ether was trading at $1,715, with a trading volume of $7.3 billion.

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