As an experienced financial analyst, I find the recent withdrawal of Grayscale’s Ethereum Futures Trust ETF application to be an intriguing development. Having closely followed the regulatory landscape for digital asset ETFs, it was surprising to see Grayscale abandon its futures-based ETF proposal just weeks before a potential decision on spot Ethereum ETFs.
As a crypto investor, I’ve learned that Grayscale’s Ether futures ETF proposal, which was expected to be listed and traded on the stock market, has been withdrawn according to a recent filing.
Last September, NYSE Arca, Inc. submitted an application to the SEC for the Grayscale Ethereum Futures Trust ETF. However, on May 3 of this year, the SEC received notice that this application had been withdrawn.
In the past, the agency had put off evaluating Grayscale’s ethereum futures ETF on multiple occasions, with the latest deferral taking place in March.
In October 2023, the Securities and Exchange Commission (SEC) gave its approval for a number of ether futures exchange-traded funds (ETFs), among which were offerings from ProShares, VanEck, and Bitwise.
James Seyffart of Bloomberg ETF Analysis was the pioneer in bringing up this observation. At first, it seemed that Grayscale aimed to employ its Ether Futures ETF as a tool in persuading regulatory bodies to grant approval for its Spot Ethereum ETF through this strategic move.
As a crypto investor, I found it intriguing that Grayscale decided to withdraw their ETF application, given that the SEC was set to make a decision on at least one Spot Ethereum ETF application in less than three weeks’ time, on May 23rd.
As a crypto investor, I’ve kept a close eye on the ETF market, particularly regarding the approval of spot Ethereum Exchange-Traded Funds (ETFs). Previously, along with analyst Eric Balchunas, we calculated that there was a 25% probability of such approval coming through in May. This is a significant decrease from our earlier estimation of a 70% chance back in January.
Despite Grayscale’s decision to withdraw, Seyffart believes that the company will have no other options left if the SEC declines approval for its spot Ethereum ETF.
As a cautious crypto investor, I would advise against taking actions that might attract the ire of regulatory bodies like the SEC. While withdrawing and re-filing your investment may seem like less work for the SEC, it also means that no legal action can be taken against you or Grayscale at this time.
According to SEC Chair Gary Gensler’s remarks in a May 7 interview with CNBC, the Securities and Exchange Commission (SEC) has yet to reach a decision on spot Ethereum exchange-traded fund (ETF) proposals.
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2024-05-08 23:34