Grayscale Investments has updated its registration statement for its proposed Ethereum fund, providing clarity on the treatment of ether and the amount held by the trust. The amended S-3 registration statement was filed on Thursday, following BlackRock's filing of its amended S-1 statement and the recent SEC approval of 19b-4 forms for eight Ethereum exchange-traded funds.

The updated filing includes details on the amount of ether required to create a basket of shares. As of May 28, 2024, approximately 0.94552590 Ether is needed to create a Basket of 100 Shares, and 94.552590 Ether is required for a Basket of 10,000 Shares after adjusting for the Amended Trust Agreement.

It's anticipated that more registration statements will be filed by issuers as the SEC has requested drafts by Friday. Trading of the ETFs will commence once the registration statements become effective.

Grayscale initiated the process to convert its Ethereum trust to a spot ether ETF in October last year. The Grayscale Ethereum trust, launched in March 2019, is considered the largest ETH investment vehicle globally. As of March 31, the trust holds approximately 2.5% of Ether in circulation.

With the recent approval of spot Ethereum ETFs, questions arose regarding whether ether would still be categorized as a security under the SEC's jurisdiction. Some industry figures, including Coinbase Chief Legal Officer Paul Grewal, assert that ether is no longer a security.

Grayscale's latest filing addresses the treatment of ether, stating that while other U.S. and state agencies have not issued official pronouncements on the matter, the SEC has implicitly viewed Ether as a commodity. This is evidenced by the SEC's approval of exchange rule filings to list shares of trusts holding Ether as commodity-based exchange-traded products.