Grayscale withdraws Ethereum futures ETF application
On May 7, Grayscale Investments, the world’s largest crypto asset management company, withdrew its Ethereum futures ETF application documents submitted to the U.S. Securities and Exchange Commission (SEC).
However, Grayscale did not explain the reason for the move, but explained that the SEC has postponed its application documents multiple times since its initial submission on September 19, 2023. The regulatory agency delayed its application documents on November 15 last year, December 18, and March this year respectively. On the 22nd, it was claimed that more time was needed to review the proposal.
Grayscale’s decision sparked speculation
Bloomberg ETF senior analyst James Seyffart believes that the EFT application may be just a strategic move, using its Ethereum futures ETF as a "Trojan horse" to create a situation similar to Grayscale's win in the GBTC lawsuit (the futures and spot approval results are inconsistent) one). In August last year, the U.S. Federal Court of Appeal sided with Grayscale in a lawsuit against the SEC, accusing the SEC of approving a Bitcoin futures ETF while rejecting a Bitcoin spot ETF.
Therefore, James Seyffart expressed doubts about why Grayscale is withdrawing now, since the SEC must make a decision on approving or denying at least one spot Ethereum ETF application by May 23 (Note: The SEC must make a decision on VanEck’s application by May 23 , while the final deadlines for ARK 21Shares and Hashdex are May 24th and May 30th).
"In my opinion, it is better to let the SEC approve or reject the ETH futures ETF first, and then start on this basis? Maybe the SEC discussed this matter with Grayscale and persuaded Grayscale to withdraw voluntarily? (Completely a guess)." James Seyffart added.
Of course, some people speculate that Grayscale may aim to increase the chances of spot ETF approval. Because the SEC may choose to approve the Ethereum futures ETF while rejecting the Ethereum spot ETF.
Seffart did not rule out the possibility of Grayscale resubmitting a revised application, a move that would reduce the SEC's workload but also lose the opportunity for litigation.
In addition, in the comments on the
It is worth noting that SEC Chairman Gary Gensler said in an interview with CNBC on May 7 that the SEC is still weighing its decision on the Ethereum spot ETF and once again emphasized the issue of fraud in the crypto market.
Recently, analysts including JPMorgan Chase, Standard Chartered Bank and Bloomberg believe that the spot Ethereum ETF application is unlikely to be approved in May. With Grayscale’s withdrawal of its application, the possibility of Ethereum spot ETF being approved in May may be further reduced.
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