Grayscale Investments has applied to the U.S. Securities and Exchange Commission for a new exchange-traded fund, and this time it isn’t for the Bitcoin ETF, but the company has applied for the Ethereum Futures ETF. There have been a lot of Bitcoin spot ETFs that are pending an approval with the regulator, and this adds to the list but it isn’t a spot ETF that has been applied.
The paperwork of the filing had mentioned that the transactions would not happen in Ether and there won’t be any need to retain any Ether custodian. Instead, the ETH dealing would happen strictly in futures.
Grayscale had earlier applied to convert its Bitcoin trust into a spot ETF, but the SEC had plans against it and the commission blocked it, until the Federal judge decide to overturn that decision. The approval for the Bitcoin spot ETF is yet to happen, but now, Grayscale will have to wait for the Ethereum Futures ETF approval as well.
Applications for Bitcoin ETFs are not new, as the world’s largest asset manager BlackRock had also applied for one and the application is pending review.
An Exchange-Traded Fund (ETF) is a type of investment fund and exchange-traded product, with shares that are tradeable on a stock exchange. ETFs are designed to track the performance of a specific index, commodity, bond, or a basket of assets, and they are structured in a way that combines features of both mutual funds and individual stocks.
ETFs offer a convenient way for investors to gain exposure to a diversified portfolio of assets, and this exposure happens in a much safer way. ETFs are transparent, versatile, and cost-efficient, making them a better choice for the retail investors to safely trade the underlying asset without having to buy the asset directly.