Grayscale Files for Ethereum ETF Futures Approval

Grayscale has submitted an application for Ethereum ETF futures, as reported by the Wall Street Journal on September 19.

Grayscale seeks to launch Ethereum ETF futures under the Securities Act of 1933, departing from their previous filings under the Investment Company Act of 1940.

Previously, the U.S. Securities and Exchange Commission (SEC) approved some Bitcoin futures ETFs under both the Securities Act of 1933 and 1940. However, Bitcoin spot ETF filings, still pending approval, are under the 1933 Act.

The ETF wave has surged in recent weeks, with numerous entities confirming their entry into the race. Volatility Shares, Direxion, Bitwise, ProShares, VanEck, Roundhill, and Valkyrie have all applied to the SEC to launch Ethereum futures ETFs. The number of applicants submitted to the regulatory agency has now reached 12.

In practice, SEC has greenlit several Bitcoin futures ETFs since October 2021, yet remains cautious on spot ETF products, citing concerns over market manipulation and fraud. Industry giants like BlackRock initially stirred up the spot ETF movement, followed closely by Fidelity, WisdomTree, Valkyrie, Invesco, and others.

On the other hand, Grayscale's recent SEC victory regarding its ETF conversion proposal has compelled the commission to review registration filings but retains the right to approve or deny them.

SEC's final decision period for each ETF filing spans 240 days. According to Bloomberg's latest estimates, the likelihood of SEC approving spot ETFs stands at 75%. During a Senate Banking Committee hearing on September 12, SEC Chairman Gary Gensler noted ongoing deliberations and the need for more time to assess other Bitcoin spot ETF filings.

Timeline for SEC Approval/Rejection of Bitcoin ETFs