Grayscale CEO Says Spot Ethereum ETF Still On The Cards

A day after Grayscale withdrew its application for the Ethereum Futures ETF, CEO Michael Sonnenshien stated they had not given up yet. He stated that Grayscale will continue to focus on converting its Ethereum Trust (ETHE) into a spot Ethereum ETF. This is the same path they undertook while converting their Bitcoin Trust GBTC into a spot Bitcoin ETF.

Grayscale And Its Spot Ethereum ETF Ambitions

Speaking at the event hosted by the Financial Times on Wednesday, Sonnenshein said: “At Grayscale we decided to focus our energy on our spot products. That’s really core to our DNA”.

Commenting on the withdrawal of the Ethereum futures ETF application, the Grayscale CEO stated that they did so since there are several futures products already available in the market today.

VanEck’s EFUT and ProShares’ EETH emerge as dominant players in the fiercely competitive futures Ethereum ETF market, collectively commanding more than 90% of the total trading volume. “Sometimes we will file for a product. That doesn’t necessarily mean it’s going to come to market,” Sonnenshein said.

Grayscale along with other top financial giants like VanEck, Blackrock, Fidelity, and Ark Invest, have applied with the SEC to bring a spot Ethereum ETF in the market. However, just two days ago, the SEC delayed its decision on the Invesco Galaxy Ethereum ETF to July.

Crypto market enthusiasts have been eagerly awaiting the launch of spot Ethereum ETF, with the first deadline approaching closer on May 23. However, market analysts haven’t been bullish on SEC’s approval due to the fact that Ethereum’s ‘security’ status remains unclear.

Grayscale Mini Trust

Grayscale has submitted paperwork to introduce a mini trust, which constitutes a smaller fund initially funded with assets from its larger trust. Craig Salm, Grayscale’s chief legal officer, emphasized that the Grayscale Ethereum Mini Trust is designed to supplement the firm’s existing line of Ethereum-based products, catering to various investor needs.

During discussions on Wednesday, Sonnenshein expressed uncertainty about the SEC’s stance on Ethereum. However, he conveyed Grayscale’s optimism that the SEC will prioritize investor interests. He added:

“Grayscale Ethereum Trust is already an SEC reporting company. We file 10-Ks and 10-Qs [disclosures to the SEC], and we’ve always been a business that pushes our regulators to allow crypto to be brought further and further into the regulatory perimeter.”