Ethereum
Grayscale withdraws Ethereum Futures ETF application from SEC
Leading crypto asset manager Grayscale has abandoned plans to offer an exchange-traded fund (ETF) for Ethereum futures, withdrawing its request for a rule change from the Securities and Exchange Commission (SEC) on Tuesday.
THE withdrawal notice for the Grayscale Ethereum Futures Trust ETF project does not explain why Grayscale changed its plans, only recounting the multiple delays cited by the SEC since its first filing on September 19, 2023. The federal regulator said it It would take more time to consider the proposal on November 15, December 18 and finally March 22 of this year.
James Seyffart, an ETF analyst at Bloomberg, said it was an interesting move.
“This was essentially a Trojan horse, in my opinion, to create the same circumstances that allowed Grayscale to win the GBTC case,” he said.
A federal appeals court had grayscale side in its case against the SEC in August after the company called out the agency for previously approving Bitcoin futures ETFs – allowing traditional investors to buy stocks that track the anticipated value of the digital asset – while denying Bitcoin Spot ETFwhich are linked to the current price of BTC.
Seyffart said he believed Grayscale wanted the SEC to “re-approve futures, deny spot,” setting up another legal showdown.
“It’s a good sign they won’t press charges this time,” he tweeted.
It’s possible that Grayscale withdrew its Ethereum futures ETF application in order to file a new, amended one, Seyffart acknowledged.
“The withdrawal and refiling is less work for the SEC, but at the same time it means there is no way for Grayscale or anyone to sue now,” he said. observed.
When a Twitter commenter suggested that Grayscale was withdrawing its application because the SEC was going to approve Ethereum spot ETFs, Seyffart scoffed.
“I don’t think it’s going to happen (although the chances aren’t zero), so I think it was something else,” he said. wrote. “That said, honestly, this is one of the very few reasons I would voluntarily remove this if I was in grayscale.”
Indeed, this decision comes in the middle growing skepticism that the SEC will allow the creation of Ethereum spot ETFs, which were once a promising prospect after the agency allowed the sale of Bitcoin spot ETFs in January. The launch of spot Bitcoin ETFs start a bull run for the leading cryptocurrency, credited with helping it set a new all-time high price in March.
Chances of approval of an Ethereum spot ETF are continued to fallwith hopes recently dampened by the revelation that the SEC had classified Ethereum as a regulated security last year, despite public statements that no decision had been made.
Edited by Ryan Ozawa.