Grayscale's CEO, Michael Sonnenshein, recently expressed uncertainty regarding the Securities and Exchange Commission's (SEC) stance on Ethereum-based products. Despite this, he emphasized that the company remains committed to converting its Ethereum Trust into a spot Ethereum ETF. This approach mirrors the path taken by Grayscale when converting its Bitcoin Trust into a spot Bitcoin ETF.

Speaking at the Financial Times event, Sonnenshein highlighted Grayscale's focus on spot products, which aligns with the company's core business strategy. The CEO also explained that the withdrawal of the Ethereum futures ETF application was due to the already saturated market, with dominant players like VanEck and ProShares controlling over 90% of the trading volume.

Grayscale, along with other major financial institutions, has applied to the SEC to launch a spot Ethereum ETF. However, the SEC has delayed its decision on the Invesco Galaxy Ethereum ETF until July, leaving market enthusiasts eagerly awaiting the launch of the spot ETF. Analysts remain cautious about the SEC's approval due to the ongoing uncertainty surrounding Ethereum's 'security' status.

Grayscale has also submitted paperwork to introduce a mini trust, which is a smaller fund initially funded with assets from its larger trust. This new product is designed to cater to various investor needs and supplement Grayscale's existing Ethereum-based products. During discussions, Sonnenshein expressed optimism that the SEC will prioritize investor interests, citing Grayscale's history of pushing regulators to allow crypto products to be integrated into the regulatory framework.