IMPORTANT POINTS:
- Grayscale Investments introduces an ETF that tracks Ether futures.
- They won a recent legal battle with the SEC over a Bitcoin ETF.
- Other large asset managers have also filed applications for crypto ETFs.
Crypto asset manager Grayscale Investments on Tuesday filed an application for a new exchange-traded fund (ETF) that tracks Ethereum (ETH) futures, the Wall Street Journal reported. This move is an example of the company’s dynamism and vision for the future in the cryptographic financial landscape.
However, this is not the first time Grayscale has made waves in the market. The news comes just weeks after Grayscale scored a victory over the US Securities and Exchange Commission (SEC) in its ongoing application for a spot Bitcoin ETF. In a favorable turn for the firm, a judge ruled that the regulator must review the proposal again.
Legal framework and regulations
Additionally, the company’s most recent filing with the SEC is made under the Securities Act of 1933. This is the structure that governs Bitcoin commodities and spot ETFs, as the WSJ notes.
On the other hand, it is worth noting that Grayscale had already previously filed an application for a different Ether futures ETF under the Investment Company Act of 1940. This is the regulation under which most securities-based ETFs are registered.
The WSJ noted that this distinction is notable, as the SEC has previously approved Bitcoin futures ETFs registered under both acts. In fact, the agency approved two leveraged Bitcoin ETFs proposed by BITX in June.
In addition to Grayscale, over the summer, a number of giant asset managers filed applications for crypto ETFs. These include prominent names such as BlackRock, Franklin Templeton and WisdomTree, demonstrating the growing interest and confidence in the potential of crypto assets.
