Grayscale Withdraws Ether Futures ETF Application Before SEC Decision
Grayscale Withdraws Ether Futures ETF Utility Earlier than SEC Resolution
The world’s biggest cryptocurrency asset supervisor Grayscale Investments withdrew its application for an Ether futures alternate-traded fund (ETF) factual three weeks prior to the US Securities and Change Commission (SEC) turn into once situation to rule on lots of residing ETH ETFs.
The consideration of withdrawal for the Grayscale Ethereum Futures Belief turn into once filed on Would possibly per chance well well also Seventh, leaving analysts scrambling to comprehend the surprising shift. The application, filed in September 2023, proposed an ETF that could perchance well computer screen Ether futures contracts on the Chicago Mercantile Change (CME). If accepted, it would dangle been listed on the New York Stock Change.
Grayscale The usage of Ether Futures ETF as a Strategic Instrument?
Bloomberg ETF analyst James Seyffart beforehand speculated that Grayscale could perchance well be the usage of the futures ETF as a strategic instrument. He believed it goes to behave as a “Worm,” pressuring the SEC to approve a residing Ether ETF – a product that straight tracks the cost of Ethereum itself.
Alternatively, Seyffart’s confusion mirrored the broader market sentiment. The withdrawal comes factual weeks prior to the SEC has closing dates to rule on lots of residing Ether ETF applications from other corporations, at the side of VanEck (Would possibly per chance well well also twenty third), ARK 21Shares (Would possibly per chance well well also twenty fourth), and Hashdex (Would possibly per chance well well also thirtieth).
Earlier this week, the SEC announced a prolong in its dedication concerning the Invesco Galaxy residing Ethereum ETF, setting the next time limit for July 5, 2024.
Idk why they'd build this if truth be told. In my thoughts could perchance well as neatly construct the SEC write up an approval or denial for an ETH futures ETF and shuffle from there? Presumably the SEC spoke with Grayscale about this… And whatever turn into once acknowledged pleased Grayscale to withdraw? (That is a whole guess)
— James Seyffart (@JSeyff) Would possibly per chance well well also 7, 2024
Analysts Now not Waiting for ETH ETF Approval
The SEC’s stance on residing Ether ETFs stays unclear. In a fresh interview with CNBC, SEC Chair Gary Gensler acknowledged the applications but offered no explicit timeline for a dedication. “That’s something in front of our Commission stunning now,” he acknowledged. “We’re a five-member Commission, and people filings could perchance be taken up on the particular time.”
Grayscale’s withdrawal leaves the fate of residing Ethereum ETFs hanging within the balance. Whereas applications from Invesco Galaxy, BlackRock, and Fidelity are peaceable anticipated within the upcoming months, industry consultants await a identical batch dedication-making process from the SEC, mirroring its manner with residing Bitcoin ETFs in January 2023.
Bloomberg analyst James Seyffart has expressed scepticism, suggesting the fresh round of Ethereum ETF applications could perchance well within the fracture be denied.
Source : cryptonews.com
