Grayscale Renews Application for Ethereum Futures ETF

Grayscale Investments submits a new application for an Ethereum futures ETF, taking an unconventional regulatory route.
The crypto community eagerly awaits the SEC’s decision on Ethereum futures-based ETFs.

In a surprising strategic move, Grayscale Investments, a prominent player in digital currency investments, has reentered the spotlight with the submission of an application for an Ethereum futures exchange-traded fund (ETF). While this isn’t their first foray into the Ethereum ETF arena, what distinguishes this attempt is the regulatory approach they have chosen.

Grayscale’s latest application aligns with the Securities Act of 1933, a historical framework that has typically been associated with commodities and, notably, Bitcoin ETFs. This differs from their previous application, along with those of five other firms pursuing similar products, which adhered to the Investment Company Act of 1940, a more conventional pathway for securities-based ETFs.

The question arises: What motivated Grayscale to adopt this alternative route? It is conceivable that the firm is drawing insights from the approval history of Bitcoin futures ETFs, which have received the green light under both regulatory acts. Grayscale’s decision appears to be a calculated move, aimed at increasing the likelihood of approval by leveraging past precedents.

As Ethereum’s current market price hovers around $1,639, the cryptocurrency market is rife with speculation and anticipation regarding the potential impact of an Ethereum futures ETF. Investors and enthusiasts are closely watching this development, as it could have significant implications for the broader crypto landscape.

Awaiting the SEC’s Verdict

In a realm where information is of paramount importance, the cryptocurrency community eagerly awaits the next steps of the United States Securities and Exchange Commission (SEC). Recent insights from BeInCrypto suggest that the SEC might be on the verge of granting approval for Ethereum futures-based ETFs, with the possibility of this occurring as early as next month.

Notable contenders in this race include the Ether Strategy ETF, Bitwise Ethereum Strategy ETF, and the Grayscale Ethereum Futures ETF, among others. However, a veil of uncertainty still shrouds the SEC’s intentions, as they have refrained from providing any official comments. The central question that lingers: Which firm will emerge as the frontrunner in the race to launch the first Ethereum ETF, and how will it impact the broader cryptocurrency market?