The Securities and Exchange Commission (SEC) has received an application from digital asset management firm Grayscale Investments for a new exchange-traded fund (ETF) that would follow Ethereum futures.
The Securities Act of 1933, which governed commodities and spot Bitcoin ETFs, required the ETF in issue to be registered. Grayscale has already experimented with Ethereum futures ETFs. The business has previously submitted a separate Investment Business Act of 1940 application for an ETH futures ETF.
The decision is noteworthy because it dispels certain investors’ misconceptions regarding Bitcoin futures by approving Bitcoin futures ETFs that are registered under both statutes.
Grayscale’s most recent filing comes in response to a court decision that the SEC erred by rejecting the company’s request to turn its Bitcoin trust into a spot Bitcoin ETF. According to the court, Grayscale’s proposed BTC ETF was “materially similar” to BTC ETFs based on futures that had already been approved.
*This is not investment advice.