Title: Grayscale Withdraws Ethereum Futures ETF Application on the Eve of SEC Approval, What's the Intention?
On May 7th, Grayscale Investments, the world's largest cryptocurrency asset management company, withdrew its application for an Ethereum futures ETF from the U.S. Securities and Exchange Commission (SEC).
However, Grayscale did not explain the reason for this move, only stating that since its initial submission on September 19, 2023, the SEC had postponed its application multiple times, with the regulatory agency claiming the need for more time to review the proposal on November 15th and December 18th last year, as well as on March 22nd this year.
This decision by Grayscale has sparked various speculations.
James Seyffart, a senior ETF analyst at Bloomberg, believes that the ETF application may have been a strategic move, using its Ethereum futures ETF as a "Trojan horse" to create a situation similar to Grayscale's victory in the GBTC lawsuit (where the approval results for futures and spot were different). Last August, the U.S. Federal Appeals Court sided with Grayscale in a lawsuit against the SEC, accusing the SEC of approving a Bitcoin futures ETF while rejecting a Bitcoin spot ETF.
Therefore, James Seyffart expressed doubts about why Grayscale is withdrawing now, as the SEC must make a decision to approve or reject at least one spot Ethereum ETF application by May 23rd (Note: The SEC must make a decision on VanEck's application by May 23rd, while the final deadlines for ARK 21Shares and Hashdex are May 24th and May 30th, respectively).
"In my opinion, why not let the SEC approve or reject the ETH futures ETF first, and then proceed from there? It's possible that the SEC and Grayscale discussed this and convinced Grayscale to voluntarily withdraw? (Pure speculation)," added James Seyffart.
Of course, some speculate that Grayscale may be aiming to increase the chances of approval for a spot ETF. Because the SEC might choose to approve an Ethereum futures ETF while rejecting an Ethereum spot ETF.
Seffart did not rule out the possibility of Grayscale resubmitting a modified application, which would reduce the workload for the SEC but also lose the opportunity for a lawsuit.
"Withdrawing and resubmitting the application would reduce the workload for the SEC, but it also means that Grayscale or anyone else cannot file a lawsuit now."
In addition, in the comments on Twitter, some cryptocurrency insiders believe that Grayscale withdrew the application because the SEC will approve an Ethereum spot ETF, but Seyffart is skeptical about this.
"I don't think this scenario will happen (although the possibility is not zero), so I think it's because of something else. But having said that, if I were Grayscale, this would indeed be one of the very few reasons for voluntarily withdrawing this application."
It is worth noting that on May 7th, SEC Chairman Gary Gensler, in an interview with CNBC, stated that the SEC is still weighing its decision on an Ethereum spot ETF and once again emphasized the issue of fraud in the crypto market.
"The issue of an Ethereum spot ETF is what our committee is currently facing. We are a committee of five members, and these documents will be handled at the appropriate time."
Recently, analysts including JPMorgan Chase, Standard Chartered Bank, and Bloomberg have all suggested that it is unlikely for a spot Ethereum ETF application to be approved in May. With Grayscale's withdrawal of the application, the likelihood of an Ethereum spot ETF being approved in May may be further reduced.
Related reading: SEC Everywhere, What Challenges Does Ethereum Spot ETF Face?
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
