Grayscale's Ethereum Trust (ETHE) has seen its discount narrow significantly, dropping to 16%. This marks a substantial change from its nearly 30% discount a month ago and close to 60% earlier this year. 

Nate Geraci, an industry analyst, suggests that this trend could be interpreted as a gauge of market expectations regarding the approval of a spot ether ETF. 

Currently, ETHE stands at an impressive $6 billion in assets under management (AUM), highlighting its prominence in the sector.

Grayscale's new conversion effort 

As reported by U.Today, Grayscale, the leading crypto asset manager, has applied to the Securities and Exchange Commission (SEC) to convert its renowned Grayscale Ethereum Trust (ETHE) into a spot Ethereum ETF, partnering with NYSE Arca. 

ETHE, launched in March 2019, has become the foremost Ether investment vehicle globally, accounting for 2.5% of the chief altcoin's total circulating supply. 

This followed Grayscale's recent legal victory against the SEC, where a federal appeals court ruled in their favor regarding their Bitcoin trust's ETF conversion application, adding momentum to their Ethereum efforts.

BlackRock's Ethereum ETF plan 

In parallel, BlackRock, the world's largest asset manager, has revealed its intention to bet big on Ethereum. Recently, the financial titan registered the iShares Ethereum Trust and partnered with Nasdaq, intending to list and trade shares of this trust. 

Following this announcement, Ethereum's price experienced a surge, reaching a high of nearly $2,150.

BlackRock is also attempting to launch a spot Bitcoin ETF. Analysts believe that the SEC is very likely to greenlight such a product in the near future.   

Larry Fink, CEO of BlackRock, has notably shifted from skepticism to becoming a vocal crypto proponent.

About the author

Alex Dovbnya

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at [email protected].