Grayscale has filed an application to convert the Ethereum Trust into an ETF

Grayscale has filed an application with the SEC to convert the Ethereum Trust into an ETF

The company expects this to "push the regulatory boundaries" of the leading altcoin in the US

Grayscale has filed an application to convert the Grayscale Ethereum Trust into an Ethereum spot exchange-traded fund (ETF). The company announced that it has submitted an application to the US Securities and Exchange Commission (SEC) in conjunction with the NYSE Arca electronic exchange-traded fund platform.

Grayscale was founded by Barry Silbert in 2013 and is part of the Digital Currency Group (DCG). Grayscale first introduced a product in the form of a Bitcoin trust, selling its shares to accredited investors. Then it launched trusts for Ethereum (ETH), Litecoin (LTC), ZCash (ZEC), and several other cryptocurrencies.

Grayscale's Ethereum trust is the world's largest Ethereum investment product with nearly $5 billion under management, according to CoinDesk (also part of the DCG group).

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"As we prepare to convert the trust into an ETF, which is the natural next step in product development, we recognize that this is an important moment to further push the boundaries of Ethereum regulation in the U.S.," Grayscale CEO Michael Sonnenschein said in a statement.

The company is also awaiting authorization from the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Bitcoin Trust (GBTC) fund into an ETF. On August 29, a court granted Grayscale's lawsuit challenging the regulator's refusal to approve its application to launch a bitcoin ETF.

The Ethereum exchange rate has gained 2.4% over the past 24 hours, according to CoinGecko. As of 16:40 Moscow time, the asset is trading around $1.7 thousand, and the market capitalization of the coin is $207.4 billion.