Following its Bitcoin ETF application submitted last week, US asset management giant Grayscale has indicated an inclination towards applying for an exchange-traded fund (ETF) for popular altcoin Ethereum, CNBC reported Friday.
Grayscale is a crypto investment company that provides crypto-related investment trusts to qualified investors. Its Bitcoin Investment Trust (GBTC) manages 650,000 BTC, making it the largest crypto investment product. The company also manages investment trusts of multiple Altcoins but has announced plans to convert all its investment trusts to ETFs in the future.
Grayscale CEO Michael Sonnenshein told CNBC that the US SEC has approved Bitcoin ETFs, so it makes sense for the SEC to consider approving similar products from other crypto stocks, such as Ethereum ETFs and more.
Additionally, Canada approved Bitcoin ETFs in February 2021 and Ethereum ETFs in April, indicating that such trends have changed the SEC’s strict stance on ETFs.
Eight months into the launching, crypto ETFs have become a $3 billion market in Canada, contributing to higher demand in the US market as well.