Grayscale Withdraws Ethereum Futures ETF Application Ahead of SEC Decision

May 8, 2024

Grayscale’s recent decision to withdraw its 19b-4 filing for an Ethereum futures exchange-traded fund (ETF) has set the stage for intense speculation and analysis within the cryptocurrency investment sphere.

This move, coming just weeks before the anticipated decision by the U.S. Securities and Exchange Commission (SEC) on spot Ethereum ETF proposals, has sparked discussions among industry analysts and experts.

The initial filing for the Ether futures ETF was made by Grayscale on Sept. 19, 2023, with plans for listing on the New York Stock Exchange upon approval. However, the cryptocurrency asset manager filed a notice of withdrawal for the Grayscale Ethereum The SEC’s decision on Grayscale’s Ether futures ETF was slated for May 30, adding further intrigue to the situation. 

Speculation has been rampant about the SEC’s stance on Ethereum ETF proposals, with some suggesting a potential rejection of all such applications. Despite this, recent statements from SEC Chairman Gary Gensler indicate ongoing deliberations within the Commission regarding the proposed crypto investment vehicle.

“That’s something in front of our commission right now. We’re a five-member commission, and those filings will take up at the appropriate time,” the SEC chairman said in a recent interview.

Amid these developments, Fox Business’ Elanor Terrett provided insightful commentary in a recent tweet, highlighting a key aspect of Grayscale’s application process: “Something to note here is that Grayscale never filed an S-1 for its $ETH futures ETF, so the application was incomplete. The SECGov may have wanted to see if a finished futures application was coming before considering its spot application. Investor demand for the existing $ETH futures ETFs has been relatively muted since launching last year.”

Adding to the discourse, Bloomberg Intelligence ETF analyst James Seyffart offered intriguing insights on Twitter, characterizing Grayscale’s withdrawal as a tactical maneuver: “UPDATE This is interesting. Grayscale just withdrew their 19b-4 filing for an #Ethereum futures ETF. This was essentially a trojan horse filing in my view, in order to create the same circumstances that allowed Grayscale to win the $GBTC lawsuit (approve futures deny spot).”

Seyffart’s analysis delves into the strategic implications of Grayscale’s actions, speculating on potential discussions and motivations behind the withdrawal: “Idk why they’d do this honestly. In my mind might as well make the SEC write up an approval or denial for an ETH futures ETF and go from there? Maybe the SEC spoke with Grayscale about this… And whatever was said convinced Grayscale to withdraw? (This is a complete guess).”

The cryptocurrency industry awaits further developments, the future of Ethereum ETFs remains a topic of keen interest and scrutiny within the crypto community, particularly with the recent launch of Ethereum ETF in Hong Kong.

Read More

Leave a Reply

Your email address will not be published.