Grayscale Investments has recently taken a step forward by applying for a novel cryptocurrency exchange-traded fund (ETF), as disclosed in reports. This ETF, in contrast to the numerous Bitcoin spot ETFs awaiting approval, is centered around Ethereum futures. The company’s filing, unveiled on a Tuesday, clarifies that the fund will exclusively deal in futures contracts and won’t involve direct Ether transactions or require an Ether custodian, as reported by the Wall Street Journal.
This ETF falls under the regulatory framework of the Securities Act of 1933, the same framework used for commodities and spot Bitcoin ETFs. Previously, Grayscale also submitted an application for a separate Ether futures ETF under the Investment Company Act of 1940, the category under which most securities-based ETFs are registered.
This distinction is noteworthy because the SEC has already given its approval for Bitcoin futures ETFs that fall under both Acts, which has led some investors to believe that the agency is generally comfortable with Bitcoin futures.
Paving the Way for New Possibilities
Amid fierce competition from industry giants like BlackRock, VanEck, Fidelity Investments, and WisdomTree, all vying for approval for spot Bitcoin ETF products, a successful lobbying effort with the SEC could pave the way for new developments in the cryptocurrency industry.
Market analysts have set high expectations for approving a spot Bitcoin ETF product, generating even more excitement and anticipation regarding the SEC’s forthcoming decisions on all pending ETF applications.