Summary
Grayscale filed a proposal to convert its Grayscale Ethereum Trust (ETHE) into an ETH spot ETF, allowing for staking and other benefits. Fidelity also filed a similar application. However, the SEC may reject all pending ETF applications due to skepticism about digital assets. Despite regulatory hurdles, the cryptocurrency community remains hopeful for Ethereum ETF approval. Ethereum price is struggling, trading at $3,283.72.
Key Points
1. Grayscale is seeking to convert its Grayscale Ethereum Trust (ETHE) into an ETH spot ETF by staking the Ethereum held by the Trust, as outlined in a recent SEC filing.
2. The proposal includes four key proposals aimed at converting ETHE into an ETF, such as allowing ETH backing shares to participate in staking, granting authorized participants the ability to create and redeem shares, assessing fees daily instead of monthly, and bringing in a third-party custodian.
3. Despite skepticism from Bloomberg ETF analysts regarding the approval of Ethereum ETFs by the SEC, the cryptocurrency community remains hopeful for positive market impact similar to Bitcoin ETFs, although the Ethereum price is currently struggling to gain ground.