Grayscale Unexpectedly Withdraws Ether Futures ETF Application Weeks Before SEC Deadline
Summary:
Grayscale has unexpectedly withdrawn its application for an Ether (ETH) futures exchange-traded fund (ETF) only three weeks before the SEC's decision deadline. The application had been filed with a potential to be listed on the New York Stock Exchange. Bloomberg ETF analysts estimated a 25% chance of spot Ether ETFs getting approved on May 23, dropping significantly from their 70% prediction in January. Meanwhile, several other firms are set to present their spot Ether ETF applications over the next few months.
In an unexpected move, Grayscale has retracted its 19b-4 application regarding its Ether (ETH) futures exchange-traded fund (ETF), despite being only three weeks away from the mandated decision deadline from the securities regulator. The digital currency asset management firm officially withdrew its Grayscale Ethereum Futures Trust application with the US Securities and Exchange Commission (SEC) on May 7. The SEC had set a final determination date for Grayscale's Ether futures ETF for May 30.
The initial filing of the 19b-4 application took place on September 19, 2023, with the potential for it to be listed on the New York Stock Exchange if approved. James Seyffart, Bloomberg ETF analyst, initially theorized that Grayscale might be applying strategic maneuvers by using the Ether futures ETF as a stepping stone to pressurize the SEC into approving its subsequent spot Ether ETF.
However, Grayscale's sudden retraction left Seyffart puzzled, especially when the SEC is slated to determine the approval or disapproval of certain spot Ether ETF applications on May 23, just over a fortnight away.
Related: SEC may categorize Ether as a security, rejecting spot Ether ETFs – notes Michael Saylor.
Over recent months, Seyffart and colleague Eric Balchunas, another Bloomberg ETF analyst, concur that there's a 25% probability of the spot Ether ETFs gaining approval on May 23, a notable drop from the 70% prediction they posited in January. The SEC has set May 23 as the decision deadline for VanEck's application while the ARK 21Shares and Hashdex have until May 24 and May 30 respectively.
Grayscale, Invesco Galaxy, BlackRock and Fidelity are slated to present their applications within June, July and August. Despite this, much speculation exists that the securities regulator might administer a comprehensive ruling for all or the majority of the applications collectively, similar to the treatment of the spot Bitcoin ETFs in January.
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Published At
5/8/2024 1:05:52 AM
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