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Leading crypto asset manager Grayscale has filed a regulatory change with the Securities and Exchange Commission (SEC) regarding its Ethereum futures exchange-traded fund (ETF), citing multiple delays by federal regulators since its initial filing in September 2023. The application was withdrawn.
The withdrawal notice filed Tuesday did not provide any specific reasons for Grayscale's decision to abandon its plans for the Grayscale Ethereum Futures Trust ETF. The SEC has previously postponed its review of the proposal several times, most recently to March 22 after extending the review period to November 15 and December 18.
Bloomberg analyst James Seifert called the move “interesting,” saying the filing is “essentially a Trojan horse” and that Grayscale has filed a lawsuit against the SEC over Bitcoin Trust (GBTC). He suggested that the aim was to create a situation similar to the successful lawsuit.
Update This is interesting. @grayscale I just withdrew my 19b-4 application. #Ethereum Futures ETF. In my view, this was essentially a Trojan horse submission to create the same situation that Grayscale won. $GBTC Litigation (futures approval, spot rejection) pic.twitter.com/Kihj2dlQx1
— James Seyffert (@JSeyff) May 7, 2024
In August, a federal appeals court sided with Grayscale after the company accused it of approving a Bitcoin futures ETF while disavowing a Bitcoin spot ETF.
Seifert speculated that Grayscale wants the SEC to again “approve futures and deny spots,” potentially setting up a new legal showdown. But he noted that the retraction could be a sign that Grayscale won't sue this time.
However, it is notable that Seffert did not rule out the possibility of Grayscale refiling the amended application, which would reduce the effort for the SEC but eliminate the opportunity for litigation.
The move comes despite the SEC's approval of the Bitcoin Spot ETF in January, which sparked a bull run in the top cryptocurrency, despite skepticism over the SEC's willingness to approve the Ethereum Spot ETF. It was carried out in the midst of increasing demand.
The odds of an Ethereum Spot ETF being approved continue to decline, further exacerbated by the recent revelation that the SEC allegedly classified Ethereum as a regulated security last year, despite public statements indicating that no decision has been made. decreased.
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