Grayscale retracts application for Ethereum Futures ETF

Grayscale has made a surprising decision to withdraw its application for the Ether futures exchange-traded fund (ETF) just weeks before the Securities and Exchange Commission (SEC) was set to make a decision on it. The cryptocurrency asset manager filed a notice of withdrawal for the Grayscale Ethereum Futures Trust on May 7. The SEC was originally scheduled to make a final decision on the Ether futures ETF on May 30. If approved, the ETF would have been listed on the New York Stock Exchange. Bloomberg ETF analyst James Seyffart initially believed that Grayscale intended to use its Ether futures ETF strategically to influence the SEC’s decision on a spot Ether ETF. However, he expressed confusion as to why Grayscale would withdraw now, especially considering the upcoming decision on other spot Ether ETF applications. Seyffart and fellow Bloomberg ETF analyst Eric Balchunas have predicted a 25% chance of approval for spot Ether ETFs on May 23, down from 70% in January. SEC Chair Gary Gensler’s recent comments suggest that the SEC is still evaluating its decision on spot Ether ETFs. VanEck’s application has a deadline of May 23, while ARK 21Shares and Hashdex have final deadlines on May 24 and May 30, respectively. Other applications from Grayscale, Invesco Galaxy, BlackRock, and Fidelity are expected to be made in the coming months, with industry experts anticipating a similar decision-making process to the one seen with spot Bitcoin ETFs in January.