Grayscale amends spot Ethereum fund registration statement

Grayscale implemented some modifications to its S-3 listing statement, which was subsequently submitted for official filing the day after BlackRock submitted its amended S-1 statement. Additional amended registration statements are anticipated to be submitted in the future. 

This was one week after the Securities and Exchange Commission (SEC) granted its assent to 19b-4 forms regarding eight Ethereum exchange-traded funds.  

In the latest filing regarding the quantity of ether required for building a cart full of shares, the company introduced a fresh approach.

The quantity of ether required to construct a cart carrying one hundred shares was approximately 0.94552590 on May 28, 2024, while the quantity required to construct a cart bearing ten thousand shares was 94.552590. In accordance with the amended trust agreement, this figure is determined.

Further listing statements are expected to be filed after the SEC demanded that issuers submit drafts by Friday. Trading activities related to ETFs will cease until the listing statements receive approval.

Grayscale took the initiative to convert its Ethereum trust to a spot-ether ETF towards the end of 2023. According to the company’s filing, Grayscale established the Ethereum Trust in March 2019, making it the largest ETH investment hub globally. As of March 31, 2024, the trust contained roughly 2.5% of ether, according to Grayscale’s estimate.

Following the consent regarding spot Ethereum ETFs, market observers were uncertain whether the SEC would still accept ether under the category of security. The Chief Legal Officer with Coinbase, Paul Grewal, thinks otherwise. 

In the US, the matter is currently lacking clarity, with no state agency publicly declaring anything.