Cryptocurrency asset manager Grayscale Investments said Monday it has partnered with NYSE Arca has file for approval from the U.S. Securities and Exchange Commission to convert Grayscale Ethereum Trust (OTCQX:ETHE) to a spot ether exchange-traded fund.

Launched in March 2019, ETHE is the world's largest ether (ETH-USD) investment product with assets under management of almost $5B, representing 2.5% of all ether in circulation.

The existing trust invests in ether (ETH-USD) futures contracts to gain indirect exposure to the underlying asset, whereas a spot ETF would invest directly in ETH.

Grayscale is also seeking approval from the SEC to convert its Grayscale Bitcoin Trust (OTC:GBTC) to a spot bitcoin (BTC-USD) ETF. Last month, a panel of judges overturned an SEC decision to block Grayscale from converting that trust to an ETF, requiring the regulator to revisit the firm's application.