Grayscale has pulled its application for a Ether futures exchange-traded fund (ETF), just weeks before the SEC’s scheduled decision date. Here’s what happened:
On May 7, Grayscale filed a notice to withdraw its 19b-4 application for the Grayscale Ethereum Futures Trust with the SEC. This move came just ahead of the SEC’s deadline to decide on Grayscale’s Ether futures ETF, originally set for May 30.
Grayscale initially filed its application for an Ether futures ETF back in September 2023, with plans to list it on the New York Stock Exchange if approved. Some analysts believed Grayscale aimed to use this ETF as a strategic move to push for approval of its spot Ether ETF. However, the decision to withdraw now has left analysts puzzled.
Analysts had previously speculated about the chances of spot Ether ETFs getting approved, with the odds fluctuating over time. Grayscale’s withdrawal hasn’t significantly impacted these odds. However, it does raise questions about Grayscale’s options should its spot Ether ETF application face rejection.
SEC Chair Gary Gensler’s recent comments indicate that the SEC is still deliberating on the spot Ether ETF applications. The decision deadlines for VanEck, ARK 21Shares, and Hashdex are approaching, with final deadlines set for May 23, May 24, and May 30 respectively. Additional applications from Grayscale, Invesco Galaxy, BlackRock, and Fidelity are scheduled for submission in the coming months.
Industry pundits anticipate the SEC to make decisions on all or most of the applicants, similar to its approach with spot Bitcoin ETFs in January. The outcome will be closely watched by investors and the crypto community alike.
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