Grayscale withdraws Ethereum futures ETF application

Grayscale withdraws application for ether futures ETF before the SEC’s expected ruling.

Grayscale Investments withdrew its proposal for an exchange-traded fund (ETF) based on ether futures contracts last week.

The withdrawal comes just weeks before the US Securities and Exchange Commission (SEC) is expected to rule on similar proposals from other firms.

U.S. issuers and other firms expect the SEC to deny those applications, citing discouraging meetings with the regulator.

This decision by NYSE Arca, the exchange where the ETF would have been listed, follows concerns that the SEC will most likely reject all spot ether ETF applications. Several US firms have already filed such applications, including Grayscale’s proposal to convert its existing Grayscale Ethereum Trust into a spot ETF.

Grayscale’s futures-based ETF application was filed in September 2023, shortly before similar products began trading. However, the SEC delayed making a decision, leading to its withdrawal. Grayscale argues that since the SEC approved futures ETFs, it should also approve spot ETFs due to the connection between the two markets.

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