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Grayscale Files Application to Convert Ethereum Trust Into Spot Ethereum ETF

2 mins
Updated by Michael Washburn
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In Brief

  • Grayscale, a leading crypto asset manager, has filed an application with the SEC to convert Ethereum Trust into a spot Ethereum ETF.
  • The Grayscale Ethereum Trust, the largest ETH investment vehicle globally, constitutes 2.5% of total ETH in circulation, nearly $5B.
  • Grayscale's move is anticipated to reduce the current 30.90% discount to the Net Asset Value (NAV) at which ETHE is trading.
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One of the world’s largest crypto asset managers, Grayscale, has applied with the Securities and Exchange Commission (SEC) for the Ethereum (ETH) spot Exchange Traded Fund (ETF).

Lately, the fund managers are pushing hard to list spot ETFs for Bitcoin and Ethereum. Meanwhile, the community eagerly waits to hear if the SEC will approve these filings.

Grayscale Wants to Convert The Largest Ethereum Investment Vehicle to an ETF

According to GlobeNewswire, the New York Stock Exchange (NYSE) Arca has filed with the SEC to convert the Grayscale Ethereum Trust (ETHE) to a spot Ethereum ETF. 

Notably, the Grayscale Ethereum Trust is the largest ETH investment vehicle in the world. As per the reports, it comprises 2.5% of the total ETH in the circulation. In fiat terms, it makes up nearly $5 billion.

The Grayscale CEO Michael Sonnenshein believes it is the next step to bring Ethereum closer to the US regulatory perimeter.

On Friday, the ETHE was trading at a 30.90% discount to the Net Asset Value (NAV). But with NYSE Arca’s filing, the community expects the discount to shrink. A community member wrote:

“At market close on Friday ETHE was still trading at a 30% discount to NAV, and GBTC around 20%. That gap should shrink today.”

Not to mention, the discount to NAV value is near to its 1-year-lows.

Read more: How to Buy Ethereum (ETH) and Everything You Need to Know

Grayscale Ethereum ETF, Grayscale Ethereum spot ETF
ETHE at 30.90% discount to NAV. Source: YCHARTS

Besides spot ETF, Grayscale submitted with the SEC for an Ethereum futures ETF on September 19.  

Asset managers ARK Invest and 21Shares also filed for Ethereum spot ETF on September 6. However, the SEC delayed announcing its decision until the end of 2023.

Read more: What are Perpetual Futures Contracts in Cryptocurrency?

Do you have anything to say about the Grayscale Ethereum ETF or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

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Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...
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