U.S. SEC Approves Generic Listing for Grayscale Ethereum ETFs

The United States Securities and Exchange Commission (SEC) has approved NYSE Arca’s request to convert the Grayscale Ethereum Trust ETF and its Mini Trust to a generic listing standard. The change takes effect immediately, allowing the funds to operate under a widely used commodity-based trust framework.

As a result, the transition removes the need for separate SEC approval for each transaction. NYSE Arca said the adjustments will streamline trading while maintaining investor protections.

SEC Approval and Oversight

According to the exchange, Section 6(b)(5) of the Exchange Act requires rules to prevent fraud, support fair markets, and protect participants. NYSE Arca believes the generic listing supports these objectives while simplifying operations.

The exchange also noted that adopting a generic standard would eliminate unnecessary oversight steps. This approach is expected to enhance market efficiency and facilitate the smoother functioning of the funds.

Following this request, the SEC waived the usual 30-day waiting period for the rule change. The regulator stated the move aligns with public interest and investor protection guidelines.

However, the SEC retains the authority to temporarily suspend the new listing for the next 60 days. This measure ensures the agency can intervene if risks to investors or markets arise.

Grayscale ETF Developments

Grayscale has recently filed additional ETF proposals with the SEC. On September 9, the firm requested approval to convert its Bitcoin Cash and Litecoin trusts into public ETFs.

The company has also filed for a new Hedera (HBAR) Trust ETF and plans to launch a Chainlink spot ETF. The Chainlink product is set to trade on NYSE Arca under the symbol GLNK.

Earlier this year, the SEC delayed its decision on Grayscale’s Cardano ETF. The proposed Cardano fund would provide exposure to ADA through a commodity trust structure, avoiding the need for direct token ownership.

Together, these filings and approvals underscore Grayscale’s ongoing efforts to expand its public crypto offerings. The SEC’s recent action shows support for generic listings, which could simplify future conversions of other digital asset trusts.

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