The Grayscale Ethereum Trust (ETHE)
This represents a significant change from the discount of around 30% a month ago, and nearly 60% earlier this year.
Nate Geraci, an industry analyst, suggests that this trend can be interpreted as a gauge of market expectations regarding the approval of an immediate Ethereum Exchange-Traded Fund (ETF).
Currently, the assets under management (AUM) in ETHE stand at $6 billion.
Grayscale’s New Conversion Effort
Grayscale, the leading digital currency asset management company, has submitted an application to the Securities and Exchange Commission (SEC) to convert its ETHE into an immediate Ethereum ETF.
Launched in early 2019, ETHE has become the world’s first investment vehicle for Ethereum, representing 2.5% of the total circulating supply of the leading altcoin.
The Regulatory Giant
Their victory in the federal appeals court regarding their Bitcoin Trust’s ETF conversion request has added momentum to their Ethereum efforts.
The conversion of the trust into an immediate Exchange-Traded Fund would be a significant development for the company and the cryptocurrency market. ETFs are widely recognized and utilized investment vehicles for both individual and institutional investors. This familiarity could attract a broader investor base to Ethereum, enhancing liquidity and potentially stabilizing the market. Additionally, ETFs generally offer lower fees and greater transparency compared to mutual funds, making them more attractive to cost-conscious investors.
BlackRock’s Ethereum ETF Plan
iShares Ethereum Trust has partnered with Nasdaq to list and trade the trust’s shares.
Simultaneously, BlackRock, the world’s largest asset management company, revealed its substantial bet on Ethereum. Following this announcement, the price of Ether surged to almost $2150, reaching its highest level.
Immediate Bitcoin ETF Launch
Analysts believe that the Securities and Exchange Commission is likely to give the green light to such a product in the near future.
Larry Fink, CEO of BlackRock, has notably shifted from skepticism to becoming an outspoken supporter of cryptocurrencies.
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