Crypto Asset Manager Grayscale Files for New Ethereum Futures ETF: WSJ

On September 19, Grayscale Investments filed with the Securities and Exchange Commission for a new ETF tracking Ethereum futures.

The firm has filed under both securities acts, the Securities Act of 1933 and the Investment Company Act of 1940, reported the WSJ.

This is worth noting because the SEC has approved Bitcoin futures ETFs registered under both acts.

Moreover, around a dozen financial firms besides Grayscale have filed for ETH futures-related ETFs under the latter act, which could be approved in October.

Ethereum ETF Flurry

Grayscale’s latest filing follows a court ruling that the SEC should not have denied its application to convert its Bitcoin Trust (GBTC) into a spot Bitcoin ETF.

Volatility Shares, Bitwise, ProShares, VanEck, Roundhill, and Valkyrie Investments have all applied for Ethereum futures ETFs in recent weeks.

The most recent filing came on Sept. 13, when Nasdaq’s Hashdex joined the race with the Hashdex Nasdaq Ethereum ETF. The fund is designed to include a combination of spot ETH holdings and futures contracts in its portfolio.

Earlier this month, Ark Invest and 21Shares submitted applications for spot Ethereum ETFs. However, the SEC has yet to approve any spot crypto exchange-traded product, citing market manipulation and volatility.

Grayscale’s GBTC fund is currently trading at a discount of 20.3%, according to Ycharts. The discount to net asset value dropped as low as -50% following the collapse of FTX late last year.

Grayscale on Fed Meeting

On Sept. 19, Grayscale published a market update detailing its thoughts on US monetary policy.

The FOMC is expected to release guidance on rates for Q3 today. What could it spell for digital assets? Read our latest Market Byte for analysis: https://t.co/cMxHxUknVk pic.twitter.com/9XiSzhFQNJ

— Grayscale (@Grayscale) September 19, 2023

The Federal Reserve will meet on Sept. 20 to discuss rate hikes and fiscal policy going into the last quarter. Grayscale analysts were confident that the outcome will be positive for crypto markets.

“We expect that the Federal Reserve will signal either that it has finished raising rates or that it will be finished after one more increase in Q4. That guidance will likely drive crypto and traditional assets over the very short run.”

They said that whether the Fed hikes one more time or not may be less important for crypto than the fact that the broader tightening cycle is coming to an end. “Fed tightening has weighed on valuations, and its conclusion could help support an eventual recovery,” said the analysts.