Grayscale Investments, a subsidiary of the Digital Currency Group (DCG), is making significant strides by applying for an Ethereum futures-based Exchange Traded Fund (ETF) with the United States Securities and Exchange Commission (SEC). This latest move by Grayscale aligns with the Securities Act of 1933, which governs commodities and spot bitcoin ETFs, as reported by the Wall Street Journal (WSJ). It’s worth noting that this marks Grayscale’s second Ethereum ETF filing, with the previous one being filed under the Investment Company Act of 1940, the regulation that most securities-based ETFs adhere to.
Grayscale is leveraging its recent victory over the SEC, where a Federal Appeals Court ruled that the SEC had no grounds to deny Grayscale the opportunity to convert its Grayscale Bitcoin Trust (GBTC) into a full-fledged Bitcoin ETF. While the landscape for spot Bitcoin ETFs remains uncertain, the SEC has shown a more favorable stance toward Futures ETFs linked to top digital currencies. This trend has raised expectations that the SEC may approve Grayscale’s latest Ethereum ETF application and others within the industry.