Grayscale updates registration statement for proposed Ethereum fund

abdelaziz Fathi

Grayscale Investments has updated its registration statement for its proposed Ethereum (ETH) fund, including detailed information on the treatment of ether and the amount held by the trust.

Grayscale Bitcoin Trust (GBTC)

On Thursday, Grayscale filed its amended S-3 registration statement, following BlackRock’s amended S-1 statement the previous day and a week after the U.S. Securities and Exchange Commission (SEC) approved 19b-4 forms for eight Ethereum exchange-traded funds (ETFs).

The updated filing from Grayscale includes specifics on the amount of ether required to create baskets of shares. “As of May 28, 2024, the number of Ether required to create a Basket of 100 Shares is approximately 0.94552590 Ether and the number of Ether required to create a Basket of 10,000 Shares after giving effect to the Amended Trust Agreement would have been 94.552590 Ether,” the statement read.

More registration statements are expected as the SEC has requested issuers to submit their drafts by Friday. Trading of the ETFs will not start until these registration statements become effective.

Grayscale moved to convert its Ethereum trust to a spot ether ETF in October of last year. Launched in March 2019, the Grayscale Ethereum trust is the largest ETH investment vehicle globally. The trust holds about 2.5% of Ether in circulation as of March 31, according to the filing.

Since the SEC’s approval of spot Ethereum ETFs last week, there has been industry speculation regarding ether’s status as a security. Coinbase Chief Legal Officer Paul Grewal, among others, has asserted that ether is no longer considered a security.

Grayscale addressed ether’s regulatory status in its latest filing, stating, “Other U.S. and state agencies, such as the SEC, have not made official pronouncements or issued guidance or rules regarding the treatment of Ether, although the SEC, by action through delegated authority approving exchange rule filings to list shares of trusts holding Ether as commodity-based exchange-traded products, has implicitly taken the view that Ether is a commodity.”

Read this next

Digital Assets

Gemini Earn users to recover $2.18 billion in crypto payouts

Cryptocurrency exchange Gemini has agreed to pay $50 million worth of digital assets to investors in its Gemini Earn program as part of a settlement with the New York Attorney General (NYAG), announced on Friday.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: British Pound (GBP) Weakness, US Inflation, Euro, USD June 14 ,2024

British Pound weakens due to lower inflation expectations, potential policy changes from Reform Party, and broader economic concerns.

blockdag

Q2 2024’s Top 5 Cryptos to Buy: BlockDAG, Pepe, Toncoin, Solana and Render

Learn about 2024’s Q2 top 5 cryptos. Explore potential high-return and advancements of altcoins like BlockDAG, Pepe, Toncoin, Solana, and Render.

Fundamental Analysis, Tech and Fundamental, Technical Analysis

GBPCAD Technical Analysis Report 14 June, 2024

GBPCAD currency pair can be expected to fall further toward the next support level 1.7250, former strong resistance from last year.

Digital Assets

Binance acquitted of tax evasion in Nigeria, now faces AML charges

Nigeria has dropped tax evasion charges against two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, after the world’s largest cryptocurrency exchange appointed a local representative to handle court processes related to the allegations.

Digital Assets

Trezor launches new hardware wallet ‘Safe 5’ with fresh security features

Crypto hardware wallet manufacturer Trezor announced on Friday the launch of its latest flagship product, the Trezor Safe 5, featuring upgraded security to promote self-custody of digital assets.

Institutional FX

Tradeweb enhances RFQ trading in bonds and ETFs

“Clients can now leverage predictive analytics and data to unveil deeper insights at the list level, providing them with an unparalleled level of precision throughout every point of the RFQ trading process.”

Industry News

US repatriates $1.4B misappropriated 1MDB funds to Malaysia

1MDB was created to promote economic development in Malaysia, but instead it went to Hollywood, a superyacht, a Monet and Van Gogh, as part of a $4.5 billion money laundering scheme.

Crypto Insider, Web3

What’s New in Web3 in 2024

Is Web3 really the future of the internet? It certainly seems so. In 2024, the momentum behind decentralized technologies, blockchain, and token-based economies will be stronger than ever.

<