Grayscale, a digital currency investment firm, has applied to the United States Securities and Exchange Commission (SEC) for an ETF. The application targets the launch of a unique ETH futures exchange-traded fund (ETF). Recently Grayscale proposed the trading and listing of the shares of the Grayscale Ethereum Futures Trust ETF in line with exclusive New York Stock Exchange Arca Rule 8.200-E.
Grayscale’s Latest Submission under the US SEC Aims at the Launch of an ETH Futures ETF
The proposal pursues the provisions of the Securities Exchange Act-based provisions of 1934. It is also under the rule change that the NYSE submitted to the SEC. Grayscale Advisors has the credit for the management of the exchange-traded fund. The filing addresses them as the “sponsor.” In this way, the Sponsor is going through the procedure of registration in the form of a commodity pool runner under the CFTC.
At present, it is attempting to turn into a participant of the National Futures Association, as the document disclosed. Moreover, according to it, Grayscale Advisors has involved Vident Advisory to play the role of subadvisor. Hence, it is serving as the commodity trading-related adviser of the trust. The Grayscale Ethereum Futures Trust intends to sustain its holdings concerning the ETH futures contracts.
The filing clarified that the trust will never take future positions toward the lengthy option of cash settlement. In the case of the ETH futures contracts the trust will not need to utilize an Ether custodian, as per the filing. The trust will deposit an early margin amount for the initiation of an open position related to future contracts. The nature of a margin deposit resembles a cash-performance bond.
Grayscale’s ETF Application Succeeds that of Valkyrie’s
The margin assists in assuring the performance of a trader’s sold or purchased futures contracts. The news emerged a few weeks following the digital asset managing platform Valkyrie also submitted an ETH futures ETF application under the SEC back in August’s mid.
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