You are at: Home » Leading Crypto Asset Manager Grayscale Pulls the Plug on Ethereum Futures ETF Application Unexpectedly

Leading Crypto Asset Manager Grayscale Pulls the Plug on Ethereum Futures ETF Application Unexpectedly

Greyscale has withdrawn its Ethereum Future ETF application with the SEC. Is this bullish or bearish for ETH and the wider crypto market?

8 May 2024, Wednesday – Prominent cryptocurrency asset management Grayscale withdrew its application for a rule change from the Securities and Exchange Commission (SEC) on Tuesday, abandoning its intention to launch an Ethereum futures exchange-traded fund (ETF).

The withdrawal notice for Grayscale’s ETH ETF, which was first filed on 19 September 2023, just cites the multiple delays noted by the SEC; it does not however explain why Grayscale changed its mind.

On 15 November 2023, 18 December 2023, and ultimately 22 March this year, the federal regulator announced that it would require additional time to consider the request.

A post on X by Bloomberg’s ETF expert James Seyffart, stated that it’s an intriguing move. He said, “this was a trojan horse filing, to create the same circumstances that allowed Grayscale to win the GBTC lawsuit.”

What’s Going on With Grayscale and the SEC?

Grayscale sued the SEC in August last year as a federal appeals court sided with the company. Grayscale had accused the regulator of approving Bitcoin futures ETFs in the past – which let traditional investors purchase shares that tracked the expected value of the digital asset – but rejecting Bitcoin spot ETFs, which are based on the current price of BTC.

Seyffart said that he believed Grayscale intended for the SEC to once more “approve futures, deny spot.” Hence, starting a new legal dispute.

He also posted on X, “It looks like they won’t be filing a lawsuit this time around.” According to Seyffart, Grayscale might have withdrawn their Ethereum futures ETF application in order to resubmit an altered one.

According to speculators, the action was taken in the face of growing doubts regarding the SEC’s willingness to approve the upcoming Ethereum spot ETFs – an idea that was once seen as a promising possibility following the agency’s approval of the selling of Bitcoin spot ETFs in January.

The introduction of Bitcoin spot ETFs is credited with starting a bull run for the leading cryptocurrency and pushing its price to a new all-time high in March 2024.

Amid the Grayscale news, the likelihood of an Ethereum spot ETF being approved has been declining, most recently as a result of news that the SEC may have classed Ethereum as a regulated security last year, even though the agency had previously said in public that no decision had been made.

99Bitcoins Presale Bonus: 99BTC Token Just Raised $1M!

Our very own 99Bitcoins Presale recently smashed the $1m milestone – and with less than one week remaining ahead of the next incremental price increase – explore why 99BTC token could explode in 2024.

Join our ‘Learn2Earn’ revolution before it’s too late. Begin staking right away to secure even more rewards (1,140% APY) while waiting for the official token launch date in Q3!

EXPLORE: PEPE Price Analysis: As PEPE Leads Meme Coin Resurgence, Is 99BTC Next to Explode?

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Free Bitcoin Crash Course

Learn everything you need to know about Bitcoin in just 7 days. Daily videos sent straight to your inbox.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
We hate spam as much as you do. You can unsubscribe with one click.
We hate spam as much as you do. You can unsubscribe with one click.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top