Grayscale Investments (GBTC), a leading crypto asset management firm, has recently revised its application with the Securities and Exchange Commission (SEC) for a spot Ethereum ETF.
According to Craig Salm, Grayscale’s Chief Legal Officer, the amendment involves Form 19b-4, which is crucial for the transition of Grayscale Ethereum Trust (ETHE) to NYSE Arca.
We just filed @Grayscale Ethereum Trust's amended Form 19b-4 filing. This is an important step in our effort to uplist $ETHE to NYSE Arca.
Investors want and deserve access to #Ethereum in the form of a spot Ethereum ETF and we believe the case is just as strong as it was for… pic.twitter.com/fOwJlHS71o
— Craig Salm (@CraigSalm) March 15, 2024
This strategic move will enable investors to gain direct access to Ethereum through a spot ETF, marking a significant development in Grayscale’s efforts to uplist ETHE to NYSE Arca and providing a convenient avenue for investors seeking exposure to Ethereum.
Grayscale’s endeavor to establish a spot Ethereum ETF mirrors the broader industry’s push to connect investors with cryptocurrencies through regulated channels. In October, Grayscale joined forces with NYSE Arca, proposing the conversion of its ETHE into a spot Ethereum ETF to the SEC.
Although Grayscale succeeded in launching a spot Bitcoin ETF following a legal intervention, its Ethereum ETF initiative encountered delays.
The SEC extended the initial decision deadline beyond November 17, 2023, justifying the need for further examination, with subsequent postponements stretching the review period even longer.
The SEC’s decision to further postpone the review process for Grayscale’s Ethereum ETF aligns with the regulators’ cautious stance towards crypto-related products.
Although these regulatory hurdles have caused delays, the market remains optimistic about the eventual approval of Ethereum ETFs, drawing confidence from the remarkable success of spot Bitcoin (BTC) ETFs.
The strong performance of these Bitcoin ETFs serves as a testament to the potential demand for Ethereum-based products, fueling expectations for a similar outcome in the Ethereum market.
Price Action
Bitcoin was recently trading above the $66,000 level. The leading cryptocurrency has surged roughly 170% in the last 12 months, while Ether, the second-largest cryptocurrency by market capitalization, has gained around 115%. However, Ether saw a 4% decline to $3,570 in trading on Saturday.
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