Grayscale Investments, a prominent crypto asset management firm, has submitted an application for a new exchange-traded fund (ETF) that would track ether futures, as reported by the Wall Street Journal.
This development follows closely on the heels of Grayscale’s recent victory over the U.S. Securities and Exchange Commission (SEC) regarding its application for a spot bitcoin ETF. A judge ruled that the regulatory agency must re-evaluate the proposal, marking a significant milestone for Grayscale.
Grayscale’s latest filing with the SEC is framed within the context of the Securities Act of 1933, the regulatory framework governing commodities and spot bitcoin ETFs. This approach represents a departure from the company’s prior application for an ether futures ETF, which was filed under the Investment Company Act of 1940. Most securities-based ETFs are typically registered under this act. It is noteworthy that the SEC has previously approved bitcoin futures ETFs registered under both acts, with the agency granting approval for two leveraged bitcoin ETFs proposed by BITX as recently as June.
Grayscale’s move to file for an ether futures ETF aligns with a broader trend among major asset management firms. Over the summer, several industry giants, including BlackRock, Franklin Templeton, and WisdomTree, submitted applications for crypto ETFs. This growing interest reflects the increasing recognition of cryptocurrencies as legitimate investment assets within the traditional financial sector.
