Grayscale Investments Seeks SEC Approval for Ethereum Futures ETF
Grayscale Investments, the largest digital asset manager, took a proactive step by filing paperwork with the U.S. Securities and Exchange Commission (SEC) for the creation of a new ethereum (ETH) futures-focused exchange-traded fund (ETF).
This new offering, called the Grayscale Ethereum Futures Trust, will center on ethereum futures contracts. Grayscale aims to list this ETF on the New York Stock Exchange (NYSE) Arca, utilizing two types of ethereum futures contracts available on the CME trading platform: “ETH contracts” representing 50 ETH and “MET contracts” representing 0.10 ether.
These contracts enable investors to speculate on ethereum’s future prices without owning the cryptocurrency itself, functioning similarly to traditional futures contracts. The ETF will mirror daily price changes in the two closest expiring ETH contracts and will require an initial margin deposit to initiate open positions in futures contracts. Grayscale’s recent legal victory in its spot bitcoin ETF application has added momentum to its push for approval, emphasizing the regulated nature of CME as a futures exchange, ensuring transparency and oversight in the trading of ETH and MET contracts.
Clever Robot News Desk 22nd September 2023
