Grayscale Withdraws Ether Futures ETF 19b-4 Filing

Grayscale Investments made headlines by withdrawing its 19b-4 filing for an Ethereum Futures ETF sparking speculation about its motives.

Grayscale Investments has taken a dramatic turn of events by withdrawing the 19b-4 filing for its Ethereum Futures Exchange-Traded Fund (ETF).

Why Did Grayscale Back Down its ETF Push?

James Seyffart, Senior Bloomberg ETF Analyst was the one who brought the news to the forefront and this development is causing new talks to emerge.

As of right now, the reasoning behind Grayscale’s decision to remove the Ethereum Futures ETF from their portfolio is not clear.

On the other hand, the general market outlook and the possibility of approval have maintained a lack of enthusiasm among a significant number of applicants and watchers.

In September of the previous year, Grayscale submitted its application for this Ethereum Futures Exchange-Traded Fund. The company made the current filing following its victory against the United States Securities and Exchange Commission (SEC) in the run-up to the approval of the Bitcoin exchange-traded fund (ETF).

Grayscale’s Ether Futures proposal is one of the many comparable products that require approval from the regulator. The regulator must give its approval.

Following a couple of decision postponements, this withdrawal has generated sufficient conjecture to warrant further investigation. Seyffart suggests that the company may be using this withdrawal as a strategy to prevent rejection of their primary Spot Ethereum ETF application.

With the approval of a futures exchange-traded fund (ETF) and the rejection of a spot alternative, the experts speculated that the SEC might be trying to play smart.

He speculated that the SEC might have contacted Grayscale about the application. He believed that whatever the SEC had to say may have sped up the process of withdrawing the application altogether.

The market regulator is now conducting an investigation into the possibility of classifying Ethereum as an investment contract. Analysts anticipate that if it successfully achieves this milestone, it will bolster its resolve to reject all Ethereum ETF products.

BlackRock, Fidelity Investments, and Bitwise are just a few of the potential issuers that are looking to get their applications approved. A significant number of applicants rely on the fact that their spot Bitcoin ETF applications were successful.

Spot Ethereum ETF: An Inevitable Product

Many industry innovators are mounting opposition to the Securities and Exchange Commission (SEC), which is why the possibility of a denial is significant.

For example, ConsenSys has initiated legal action against the market regulator in response to the proposed classification of Ethereum and other cryptocurrencies as securities.

It is currently unknown where this litigation will end, nevertheless, the current projection is that a spot Ethereum ETF denial could potentially launch a succession of lawsuits regarding the same issue.

The pursuit of an exchange-traded fund (ETF) by Grayscale and its peers is just getting ready to become more complicated as politicians continue to voice their disagreement with the SEC’s assertions that alternative cryptocurrencies are securities.