Grayscale, the largest crypto asset manager in the world, has announced its intention to seek approval from the Securities and Exchange Commission (SEC) for the transformation of its Grayscale Ethereum Trust (ETHE) into a spot Ethereum Exchange-Traded Fund (ETF) in collaboration with NYSE Arca. This announcement was made in a press release issued on Monday.
Launched in March 2019, ETHE stands as the leading investment vehicle for Ether on a global scale, managing an impressive portfolio with nearly $5 billion in assets. Currently, it accounts for 2.5% of the total circulating supply of the altcoin.
To enhance transparency, the trust gained the status of an SEC reporting company in October 2020, further solidifying its commitment to regulatory compliance.
Grayscale’s CEO, Michael Sonnenshein, emphasized that this conversion will enable Grayscale to offer a product structure that aligns more closely with the preferences of U.S. investors.
Notably, Grayscale had also expressed its intention to establish an Ether futures exchange-traded fund (ETF) in the previous month.