Grayscale is furthering its commitment to bringing a transparent ecosystem to the community. It is doing so by partnering with NYSE Arca. Both have submitted an application to the SEC, that is, the US Securities and Exchange Commission, requesting a conversion of Grayscale Ethereum Trust (OTCQX: ETHE) into a spot Ethereum ETF. Form 19b-4 will now be reviewed by the SEC for consent.
Grayscale has said that this step marks their commitment to converting the crypto investment portfolio into an ETF. It has called this a major milestone and a natural next step in the evolution of the product line-up. The development follows the SEC giving a green signal to the Ethereum futures ETF for the first time.
Michael Sonnenshein, the Chief Executive Officer of Grayscale, has said that it has been their unwavering commitment to offering regulated and transparent access to investors, adding that going for the conversion to an ETF was only a neutral step. Michael has said that it also marks the recognition of the moment when Ethereum must get deep into the perimeter of US regulation.
David LaValle, the Global Head of ETFs for Grayscale, has added to those sentiments by saying that filing Form 19b-4 is an important milestone in the course of Grayscale, wherein the venture is building its best-in-class product suite, ETF team, and capabilities to serve investors. LaValle has expressed the company’s pride in partnering with NYSE Arca by stating they are now looking forward to the next step with the SEC.
All the products of Grayscale ideally go through four different stages, with conversion to an ETF being the fourth and final stage.
The Ethereum Fund was launched in March 2019. It became an SEC-reporting public company in October 2020. Assets in the fund now represent 2.5% of Ether in circulation, with that portion valued at $5 billion.
Having said that, ETH has gone up by 0.24% in the last 24 hours. Its trading value is now $1,666.56. This is an increase of 1.86% in the last 30 days, or 1 month. Grayscale is recognized as the largest asset manager across the globe. The daily trading volume amounts to millions of dollars, with over 250,000 American investors backing the flow.
There are questions about the potential that this development has for causing a surge in ETH prices. So far, it has done the job, and the possibilities are that the price will rise some more in the next couple of hours. Predictions are that the price could surpass the mark of $1,700 or even touch the resistance of $1,750. This will set the subsequent target of $2,000, with the minimum mark of $1,800.
Details of progress in the review and acceptance of Form 19b-4 submitted to the SEC by NYSE Arca in partnership with Grayscale are awaited.