According to James Seyffart, Bloomberg ETF analyst, Grayscale recently withdrew its 19b-4 filing for an Ethereum Futures ETF. This decision has raised questions about what might have driven the firm to make this move.
Uncertainty Surrounding Ethereum Futures ETF
One primary reason for Grayscale’s withdrawal could be the uncertain regulatory landscape surrounding cryptocurrency ETFs in the United States.Â
The Securities and Exchange Commission (SEC) remains cautious and deliberate in approving crypto-related investment products. This is due to market manipulation, investor protection, and market stability concerns. Given the evolving nature of the crypto industry, Grayscale might have opted to withdraw its filing temporarily to wait for more clarity from the regulator.Â
Meanwhile, in another post, Fox Business Journalist Eleanor Terrett, mentioned that Grayscale’s application for its ETH futures ETF needs to be completed because it did not file an S-1.
Something to note here is that @Grayscale never filed an S-1 for its $ETH futures ETF, so the application was incomplete. The @SECGov may have wanted to see if a finished futures application was coming before considering its spot application.
Investor demand for the existing… https://t.co/CMvZja7UYJ
— Eleanor Terrett (@EleanorTerrett) May 8, 2024
This could be another reason the asset manager withdrew its filing. She noted this is the case as the SEC would want to see a finished futures ETF application.
Another factor influencing Grayscale’s decision could be market conditions and investor demand. Grayscale might have withdrawn its filing due to subdued investor interest in an Ethereum futures ETF. Monitoring market sentiment and investor preferences is crucial for asset managers like Grayscale when considering new investment offerings.
Delay in ETH ETF Decisions Sparks Speculation
Standard Chartered, the banking giant once had high hopes for the SEC giving the go-ahead for the spot Ethereum ETF approval by the end of the month. However, its optimism is gradually fading away.Â
A lot is happening, casting doubts about whether Ethereum ETF will get approved by the SEC. Reports reveal that the regulator might classify Ethereum as a security, a major catalyst behind this pessimistic outlook
As reported by BGEcrypto, the SEC recently postponed its decision on the 7RCC Spot Bitcoin and Carbon Credit Future ETF proposal. Likewise, the Grayscale and Franklin Templeton Ethereum ETF faced a similar situation. The proposal for the Franklin Ethereum ETF will not get a decision from the SEC until at least June 11, 2024.
