Grayscale Withdraws Ethereum ETF Application
08 May, 2024 ● Crypto News
Grayscale has withdrawn its 19b-4 application for an Ether futures exchange-traded fund (ETF) just three weeks before the SEC was set to make a decision on it.
On May 7, the cryptocurrency asset manager filed a notice of withdrawal for the Grayscale Ethereum Futures Trust with the United States Securities and Exchange Commission (SEC).
The SEC was originally scheduled to decide on Grayscale’s Ether futures ETF on May 30.
Grayscale first filed its 19b-4 application for an Ether futures ETF on September 19, 2023, which would have been listed on the New York Stock Exchange if approved.
Bloomberg ETF analyst James Seyffart initially believed Grayscale intended to use its Ether futures ETF as a “trojan horse” to compel the SEC into approving its spot Ether ETF.
However, Seyffart expressed confusion about the timing of the withdrawal, given that the SEC must approve or deny at least one spot Ether ETF application by May 23, just over two weeks away.
For several months, Seyffart and fellow Bloomberg ETF analyst Eric Balchunas have maintained a 25% chance of spot Ether ETFs being approved on May 23, down from 70% in January.
Grayscale’s withdrawal did not affect these odds.
Seyffart also noted that Grayscale now has “no way” to sue if the SEC rejects its spot Ether ETF application.
SEC Chair Gary Gensler’s comments in a May 7 interview with CNBC suggest the SEC is still deliberating its decision on the spot Ether ETF applications.
“That’s something in front of our commission right now. We’re a five-member Commission, and those filings will take up at the appropriate time.”
The SEC is required to decide on VanEck's application by May 23, with final deadlines for ARK 21Shares and Hashdex on May 24 and May 30, respectively.
Decisions on applications from Grayscale, Invesco Galaxy, BlackRock, and Fidelity are due in June, July, and August.
Many industry experts anticipate that the SEC will make decisions on all or most applicants simultaneously, as it did with the spot Bitcoin ETFs in January.
Sources:
https://cointelegraph.com/news/grayscale-withdraws-ethereum-futures-etf-application
https://www.sec.gov/files/rules/sro/nysearca/2024/34-100072.pdf
https://x.com/JSeyff/status/1787952637973065736
https://x.com/JSeyff/status/1787967843331420669
