#ETH #Ethereum #eth2.0 #Regulation
Grayscale, the leading digital currency investment firm, has announced a new commercial structure named Grayscale Funds Trust, which will manage three new products. Among these is an ETF based on Ethereum futures. Grayscale has filed three applications with the United States Securities and Exchange Commission (SEC) for the creation of new exchange-traded products. The company is waiting for the SEC's response to these applications.
The move comes amid a dispute between Grayscale and the SEC over the denial of their Bitcoin ETF. Grayscale has appealed the decision and is awaiting a response.
The Grayscale Ethereum Futures ETF is the most notable of the three new products. The company has not been involved in the Ethereum futures market until now. Grayscale's other funds have been associated with spot cryptocurrencies.
According to the application filed with the SEC, the fund aims to achieve its investment objective primarily through actively managed exposure to Ethereum futures contracts. The fund will buy a quantity of Ethereum futures to ensure that the total theoretical value of the underlying Ether in the futures held by the fund is approximately 100% of the fund's net assets.
Grayscale CEO Michael Sonnenshein says that the application for this and other funds is an attempt to establish a foundation for the company to continue creating and managing regulated and futures-based products.
The new plans of Grayscale follow a dispute with the SEC over the rejection of its application to convert its Grayscale Bitcoin Trust into a Bitcoin ETF that could be freely traded on the stock exchange. Grayscale has taken the case to court to appeal the decision.
It is worth noting that while the SEC has rejected all Bitcoin ETF applications, it does accept proposals for funds based on Bitcoin futures. However, these are different products that are subject to different regulations and precautions.
For now, Grayscale is waiting for the SEC's response to its applications to see if its new products will be approved. The launch of a Grayscale Ethereum Futures ETF could mark a significant step for the firm in the world of ETFs.
