Grayscale Withdraws Application for Ether Futures ETF Just Before SEC Decision
Grayscale Withdraws Application for Ether Futures ETF Just Before SEC Decision
Cryptocurrency asset manager Grayscale has made a surprising move by withdrawing its 19b-4 application for an Ether futures exchange-traded fund (ETF) just three weeks before the Securities and Exchange Commission (SEC) was set to make a decision on it.
The notice of withdrawal for the Grayscale Ethereum Futures Trust was filed with the SEC on May 7, leaving many in the industry puzzled by the timing of the decision. The SEC was scheduled to decide on Grayscale’s Ether futures ETF on May 30.
Grayscale had initially filed the application for the Ether futures ETF back in September 2023, with plans to list it on the New York Stock Exchange if approved. Bloomberg ETF analyst James Seyffart had speculated that Grayscale was using the Ether futures ETF as a strategic move to push for approval of its spot Ether ETF.
However, with the withdrawal of the application, questions arise as to why Grayscale made this decision now, especially with the SEC set to decide on at least one spot Ether ETF application on May 23. Despite the withdrawal, the odds of approval for spot Ether ETFs remain uncertain, with analysts holding a 25% chance of approval on May 23.
SEC Chair Gary Gensler’s recent comments suggest that the SEC is still evaluating its decision on spot Ether ETF applications, with deadlines for VanEck, ARK 21Shares, and Hashdex set for May 23, 24, and 30 respectively.
While Grayscale, Invesco Galaxy, BlackRock, and Fidelity have applications due in the coming months, industry experts anticipate that the SEC will make decisions on all or most applicants, similar to its approach with spot Bitcoin ETFs in January.
The withdrawal of Grayscale’s application adds another layer of complexity to the ongoing debate surrounding cryptocurrency ETFs and their approval by regulatory bodies. The industry will be closely watching for further developments as the SEC navigates the evolving landscape of digital asset investments.
