Grayscale joins a queue of at least 12 other applicants seeking approval for an ethereum futures ETF.

Grayscale has filed for a new Ethereum futures exchange-traded fund (ETF) under the Securities Act of 1933, diverging from its previous attempts under the Investment Company Act of 1940, according to a Wall Street Journal report.

The U.S. Securities and Exchange Commission (SEC) has previously approved Bitcoin futures ETFs under both acts, but no spot Bitcoin ETFs have been approved. Grayscale’s move aligns with the optimism around cryptocurrency ETFs, with several asset managers, including Volatility Shares, Bitwise, ProShares, VanEck, Roundhill, and Valkyrie Investments, also seeking Ethereum futures ETF approval.

Grayscale is notably planning to convert its existing GBTC fund into a spot Bitcoin ETF, with recent legal developments potentially pushing the SEC to review its application. (CryptoSlate)

The SEC denied Grayscale’s request for conversion in June 2022, citing non-fullfilment of anti-fraud and investor protection requirements. Grayscale filed an appeal against the decision. In August 2023, judges in the D.C. Court of Appeals said: “The Commission’s unexplained discounting of the obvious financial and mathematical relationship between the spot and futures markets falls short of the standard for reasoned decision making,” and ordered the SEC to review Grayscale’s application.

However, the favorable ruling from the D.C. Court of Appeals did not guarantee Grayscale an approval; it merely mandated a review.

Additionally, other firms are pursuing Bitcoin spot ETFs similar to BlackRock’s June application, but Grayscale’s differs as it involves an existing fund.

Related Story: Grayscale’s Stand Upheld; Court Rules Against SEC In Bitcoin ETF Conversion Lawsuit

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