Grayscale Pursues New Ethereum Futures ETF: What This Means for the Crypto World

• Grayscale aims to launch a new Ethereum futures’ ETF, marking its third involvement in Ethereum futures.
• The application to the SEC follows similar filings by other firms like Valkyrie.
• This move showcases Grayscale’s continued growth in the cryptocurrency space.

Grayscale proposes a new Ethereum Futures ETF, highlighting its progressive role in the expanding cryptocurrency landscape. This development suggests a rising institutional interest in Ethereum futures and Grayscale’s unwavering confidence in Ethereum’s potential.

Grayscale’s Official Filing for a New Ether Futures ETF

On September 19, Grayscale, a leading digital currency investment firm, officially filed an application with the SEC to launch the Grayscale Ethereum Futures Trust ETF. This ETF is slated to trade under the NYSE Arca Rule 8.200-E, demonstrating Grayscale’s commitment to expanding its portfolio within the regulated environment.

Details of the Ethereum Futures Trust ETF

The proposed Grayscale Ethereum Futures Trust aims to maintain its Ether futures contracts with a consistent expiration profile. It pledges not to carry futures positions until cash settlement. Interestingly, the ETF’s nature won’t require Grayscale to employ an Ether custodian. Instead, they’ll deposit a margin amount, similar to a performance bond, ensuring the trader’s delivery on the futures contracts. Grayscale has also involved Videnct Advisory as a subadviser, cementing its position as the trust’s commodity trading adviser.

Grayscale’s Current Ethereum Futures Endeavors

The document highlights that Grayscale currently offers two Ethereum futures contracts. The first, known as ETH contracts, represents 50 Ether and started trading on CME’s Globex platform on Feb. 8, 2021. The other, termed as Micro Ether Futures (MET) contracts, represents 0.1 Ether and commenced trading on Dec. 6, 2021. Both are cash-settled in U.S. dollars, indicating Grayscale’s focus on standardized and regulated futures products.

The Broader Implications of Grayscale’s Application

Grayscale’s recent application is not an isolated event. It comes on the heels of Valkyrie’s filing for an Ether futures ETF in mid-August. This surge in filings suggests a heightened institutional interest in Ethereum futures. The news from Aug. 17 that the SEC might permit the first ETFs based on Ether futures adds further optimism to Ethereum’s market outlook.

Previous Encounters: Grayscale vs. SEC

Last month marked a significant milestone for Grayscale. Their over-the-counter Grayscale Bitcoin Trust (GBTC) has been in the spotlight as they sought its transformation into a listed Bitcoin exchange-traded fund. Although the SEC initially denied the GBTC application, Grayscale’s lawsuit resulted in a court order favoring their petition. Even though it doesn’t guarantee a Grayscale Bitcoin ETF’s eventual listing, the crypto community viewed it as a positive step forward.

Conclusion

Grayscale’s move to launch a new Ethereum futures ETF underscores its dedication to the burgeoning cryptocurrency realm. While the decision from the SEC remains pending, the increasing institutional interest in Ethereum futures, coupled with Grayscale’s expanding involvement, paints a promising picture for the future of Ethereum and the wider cryptocurrency market.