Grayscales withdrew Ethereum futures ETF application, to create pressure on SEC

Grayscales withdrew Ethereum futures ETF application

Grayscale's withdrawal of its Ether futures ETF application, this move has sparked speculation among investors and analysts about the future of Ethereum ETFs in the US

 

Grayscale Investments, the world's largest cryptocurrency asset manager, withdrew its application for an Ether futures exchange-traded fund (ETF) on May 7, 2024. The application had been filed with the US Securities and Exchange Commission (SEC) in September 2023. The SEC was scheduled to deliver a final decision on the application by May 30, 2024.

The exact reason behind Grayscale's withdrawal remains unclear. Some analysts believe it might have been a strategic move to pressure the SEC into approving Grayscale's spot Ethereum ETF application, which is still pending. Grayscale might have chosen to focus its efforts on getting the spot ETF approved, considering a potential win there could be more significant. There's speculation that Grayscale might have doubted the SEC's approval for the futures ETF based on the regulatory body's past stance on crypto ETFs.

The withdrawal caused a temporary dip in the price of Ethereum (ETH). Some traders interpreted it as a sign of uncertainty regarding the future of Ethereum ETFs in the US. The withdrawal creates some uncertainty around the timeline for approving a US-based Ethereum ETF, either futures or spot. Investors interested in Ethereum ETFs should stay updated on the SEC's decisions regarding Grayscale's spot ETF application and any new developments in the US crypto ETF landscape.

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Several other companies have also filed applications for spot Ethereum ETFs with the SEC. The SEC's decisions on those applications will also be crucial for the future of Ethereum ETFs in the US. The SEC has historically been cautious about approving crypto ETFs, citing concerns about market manipulation and potential risks for investors.

Grayscale's withdrawal of its Ether futures ETF application has sparked discussions and raised questions about the future of Ethereum ETFs in the US. This move has sparked speculation among investors and analysts. While the exact reason for the withdrawal is unclear, some experts believe it may be a strategic move to focus on Grayscale's spot Ethereum ETF application, which is still pending approval. So right now investors are advised to monitor the SEC’s decisions on Grayscale’s spot ETF application, also need to remind that SEC has historically been cautious about approving crypto ETFs due to concerns about market manipulation and investor risks.Top of Form