Grayscale Drops Application to Launch its Ethereum Futures ETF

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Grayscale has shocked the market with its recent decision to withdraw its application for an Ether futures exchange-traded fund (ETF).

This move comes just three weeks before the designated deadline for the securities regulator to make a decision on the application.

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.

The SEC was originally set to make a final ruling on Grayscale’s Ether futures ETF on May 30. Grayscale initially submitted its 19b-4 application for the Ether futures ETF on Sept. 19, 2023, with plans for it to be listed on the New York Stock Exchange if approved.

Some analysts, such as Bloomberg’s ETF analyst James Seyffart, believed that Grayscale strategically aimed to use this ETF as a “trojan horse” to persuade the SEC into approving its spot Ether ETF.