Grayscale Files for a New Ethereum Futures ETF with the U.S. SEC

Grayscale, a leading name in crypto asset management, has just revealed their new Ethereum Futures ETF application submitted to the U.S. SEC.

This article delves into the complexities of the new application, including its distinct legal framework, the role of Grayscale Advisors, and the specific features of the proposed ETF.

Stay ahead in the investment world by understanding these essential details.

Grayscale's New Application for Ethereum Futures ETF

Leading crypto asset management firm Grayscale has submitted a new application for an Ethereum Futures Exchange-Traded Fund (ETF) to the U.S. Securities and Exchange Commission (SEC).

Grayscale had previously applied for another Ethereum Futures ETF. However, this new application is different in its underlying legal framework.

It is based on the provisions of the Securities Exchange Act of 1934 and the rule changes submitted by the NYSE to the SEC.

Targeting Listing on NYSE Arca

The new ETF application aims for a listing on the New York Stock Exchange's Arca platform. The ETF is set to be managed by Grayscale Advisors, as detailed in the documents.

Grayscale Advisors' Regulatory Status

Grayscale Advisors is in the process of registering with the Commodity Futures Trading Commission (CFTC) as a commodity pool operator and is also in the process of becoming a member of the National Futures Association.

Sub-Advisor Agreement

Grayscale Advisors has entered into a contract with Videnct Advisory to act as a sub-advisor responsible for commodity trading advice concerning the trust.

Features of the Proposed Ethereum Futures ETF

The newly proposed Ethereum Futures ETF aims to maintain a nearly constant maturity profile of Ethereum futures contracts. The trust will not carry any futures positions to cash settlement. Moreover, due to the nature of the ETF's Ethereum futures contracts, there is no need for the trust to use an Ethereum custodian.

Grayscale had also applied to transition their GBTC offering to a "spot bitcoin ETF." Notably, the company won a court case against the U.S. SEC last month concerning this ETF transition.