The existing Grayscale trust invests in Ether futures contracts to gain indirect exposure to ETH, whereas a spot ETF invests directly in the underlying asset.
Michael Sonnenshein, CEO of Grayscale, declared the move on X (previously Twitter) and highlighted the company’s intention to offer conventional investment products with exposure to cryptocurrency assets:
“As we file to convert ETHE to an ETF, the natural next step in the product’s evolution, we recognize this as an important moment to bring Ethereum even further into the U.S. regulatory perimeter.”
The Grayscale Ethereum Trust was introduced in March 2019 and will become an SEC reporting company in October 2020, providing the public with direct access to information regarding the performance of its cryptocurrency investment vehicle.
In addition, Grayscale reports that 250,000 investor accounts are exposed to the trust. Grayscale also stated that it remains committed to converting its cryptocurrency products into ETFs at the conclusion of a “planned four-phase lifecycle.”