Leading crypto asset manager Grayscale on Tuesday abandoned plans to offer an exchange-traded fund (ETF) on Ethereum futures and withdrew its application to change the rules with the Securities and Exchange Commission (SEC).
The withdrawal notice for the proposed Grayscale Ethereum Futures Trust ETF does not specify why Grayscale has changed its plans, and since it was first filed on September 19, 2023, the It only details the multiple delays that occurred. Federal regulators declared that more time was needed for the reversal. We will consider proposals on November 15th, December 18th and finally on March 22nd of this year.
James Seifert, ETF Analyst bloombergsaid it was an interesting move.
“In my view, this was essentially a Trojan horse submission, meant to create the same situation that allowed Grayscale to win with GBTC. We will sue,” he said.
A federal appeals court ruled that Grayscale had previously approved a Bitcoin futures ETF (allowing traditional investors to buy stocks that track the expected value of a digital asset) while denying Bitcoin Spot. sided with Grayscale in a lawsuit against the SEC in August. An ETF that tracks the current price of BTC.
Seifert set up a new legal showdown, saying Grayscale wants the SEC to once again “approve futures and reject cash.”
“This is a good sign that they are not going to sue this time,” he tweeted.
Seifert acknowledged that Grayscale may have withdrawn its Ethereum futures ETF application in order to resubmit an amended application.
“While revocation and refiling are no hassle for the SEC, they also mean there is no way for Grayscale or anyone to sue right now,” he said.
When a commenter on Twitter suggested that Grayscale had withdrawn its application because the SEC was planning to approve an Ethereum Spot ETF, Seifert scoffed.
“I don't think that's going to happen (though it's not zero chance), so I think something else happened,” he wrote. “Although, to be honest, he's one of the few reasons I would voluntarily withdraw this if I were Grayscale.”
Indeed, the move comes amid growing doubts that the SEC will approve the creation of a once-promising Ethereum spot ETF after the SEC authorized the sale of a Bitcoin spot ETF in January. It was conducted. The launch of the Bitcoin Spot ETF is believed to have sparked a bull run in the top cryptocurrency, contributing to its all-time high in March.
The odds of an Ethereum spot ETF being approved continue to decline, most recently with the revelation that the SEC allegedly classified Ethereum as a regulated security last year, despite public statements that no decision has been made. My expectations have faded.
Edited by Ryan Ozawa.
