Grayscale withdrew its application for a futures-based Ethereum ETF in September 2023. The company’s spot Ethereum ETF application, which was highly anticipated by the market for approval or rejection, remains in effect.
It is not yet known why the futures ETF was withdrawn. ETF experts also interpret the situation as “interesting”. Bloomberg ETF analyst James Seyffart said, “An interesting step. Grayscale withdrew its 19b-4 application for a futures Ethereum ETF. This was a ‘trojan horse’ application to create the same conditions for Ethereum that allowed Grayscale to win the GBTC case.”
“I honestly don’t know why they did this,” Seyffart said, adding that Grayscale may have met with the SEC and was convinced to withdraw the application with the information it received.
Ethereum spot ETFs are expected on May 23. The US Securities and Exchange Commission (SEC) is required by rule to approve or reject VanEck’s application by this date. Therefore, the eyes and ears of cryptocurrency investors will be on the SEC’s decision in the coming days.
SEC chairman Gary Gensler said on CNBC yesterday, “Currently, the issue of Ether ETFs is on the desk of our commission… The 5-person commission will make a decision in the future,” and did not give a secret.
ETH, the second largest cryptocurrency by market capitalization, is trading at $3,000.