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Grayscale seeks approval for new Ether Futures ETF.

Grayscale, a prominent digital currency investment company, has joined the ranks of firms filing for a new Ethereum futures exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC).

On September 19, Grayscale officially submitted a proposal to the SEC to list and trade shares of the Grayscale Ethereum Futures Trust (ETH) ETF under the New York Stock Exchange (NYSE) Arca Rule 8.200-E.

The proposal aligns with the regulations set forth in the Securities Exchange Act of 1934 and the rule change submitted by NYSE to the SEC.

Grayscale Advisors, referred to as the “sponsor” in the filing, manages the ETF.

In the filing, it is disclosed that Grayscale Advisors has enlisted Videnct Advisory as a subadviser to act as the trust’s commodity trading adviser.

The Grayscale Ethereum Futures Trust aims to hold Ether futures contracts with a “roughly constant expiration profile.”

Notably, the filing specifies that the trust will not carry futures positions all the way to cash settlement.

Interestingly, the nature of the Ether futures contracts within the ETF eliminates the need for the trust to utilize an Ether custodian, as stated in the filing.

adding:

“The trust will deposit an initial margin amount to initiate an open position in futures contracts. A margin deposit is like a cash performance bond. It helps assure the trader’s performance of the futures contracts that he or she purchases or sells.”

Ether Futures ETF Filings Surge as Grayscale Scores Partial Victory Against SEC

Ether Futures ETF Filings

In a flurry of ETF filings for Ether futures, digital asset management firm Valkyrie made a submission to the SEC in mid-August, just a few weeks before Grayscale’s recent filing.

This follows a wave of other firms also seeking approval for ETH futures ETFs.

On August 17, Bloomberg’s report about the SEC being ready to approve the first ETFs based on Ether futures injected a wave of optimism into the Ethereum market.

In a separate development, Grayscale achieved a significant, albeit partial, victory against the SEC in its pursuit of converting the Grayscale Bitcoin Trust (GBTC) from an over-the-counter offering to a listed Bitcoin ETF.

Initially, the SEC had rejected Grayscale’s GBTC application, leading to a lawsuit filed by the digital currency investment company.

However, the appeals court granted Grayscale’s petition for review, resulting in the vacating of the SEC’s order to deny the GBTC listing application.

Although this victory does not provide a guarantee for the eventual listing of a Grayscale spot Bitcoin ETF, the cryptocurrency community received it with enthusiasm.

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