Grayscale Withdraws Ether Futures ETF Application Ahead of SEC Decision Deadline
Grayscale has pulled out its application for an Ether futures exchange-traded fund (ETF), just three weeks shy of the securities regulator’s deadline for a decision. The withdrawal of the Grayscale Ethereum Futures Trust application from the United States Securities and Exchange Commission (SEC) occurred on May 7.
The SEC was slated to make a decision on Grayscale’s Ether futures ETF by May 30. Initially filed on September 19, 2023, Grayscale’s 19b-4 application aimed to list the ETF on the New York Stock Exchange if approved.
Bloomberg ETF analyst James Seyffart had previously speculated that Grayscale intended to strategically leverage its Ether futures ETF as a means to nudge the SEC into greenlighting its spot Ether ETF. However, he expressed bewilderment over the timing of Grayscale’s withdrawal, especially considering that the SEC is set to decide on at least one spot Ether ETF application by May 23, just over two weeks away.
Despite Grayscale’s move, Seyffart maintained his assessment that there’s a “no way” for Grayscale to take legal action should the SEC reject its spot Ether ETF application. Nevertheless, statements from SEC Chair Gary Gensler in a May 7 CNBC interview indicate that the SEC is still deliberating on the spot Ether ETF applications, stating, “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 obligated to decide on VanEck’s application by May 23, with ARK 21Shares and Hashdex facing deadlines on May 24 and May 30, respectively. Grayscale, Invesco Galaxy, BlackRock, and Fidelity have applications due in June, July, and August. However, many industry observers anticipate the SEC to address most, if not all, applicants similarly to its handling of spot Bitcoin ETFs in January.
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