- Bloomberg analyst Eric Balchunas explains why Grayscale withdrew its Ethereum Spot ETF application.
- Grayscale CEO Michael Sonnenshein had previously expressed optimism about the approval of the Ethereum Spot ETFs.
- Balchunas suggests that Grayscale withdrew the application to avoid presenting a massive ETF on a silver platter.
Bloomberg analyst Eric Balchunas provides insights into Grayscale’s decision to withdraw its Ethereum Spot ETF application, contradicting the company’s CEO’s optimistic outlook.
Grayscale’s Ethereum Spot ETF Withdrawal Explained
Bloomberg ETF analyst Eric Balchunas recently contradicted Grayscale CEO Michael Sonnenshein’s optimistic outlook regarding the approval of Ethereum Spot ETFs. Sonnenshein had previously expressed belief that these ETFs could receive approval in May. However, Balchunas offers a different perspective, stating, “I disagree. We are pessimistic as usual. It could happen at some point, but I don’t think within a year.” He also added that any rejection and the outlook of the elections in November could be significant variables that could change the outlook.
Grayscale’s Focus on Spot Products
Interestingly, Balchunas also indicated that Grayscale withdrew its ’33 Act Ether Futures ETF because they wanted to focus on spot products. He explained, “The only reason for applying under the ’33 Act’ (as opposed to the ’40 Act’) was to enable litigation. The withdrawal of the application actually closes the door for anyone to sue.” According to Balchunas, the reason Grayscale withdrew the application was to avoid presenting a massive ETF on a silver platter. The analyst also claimed that Grayscale was the actual company that enabled the approval of BlackRock Bitcoin Spot ETFs, despite criticism for outflows from its own fund.
Conclusion
In conclusion, Grayscale’s decision to withdraw its Ethereum Spot ETF application appears to be a strategic move to focus on spot products and avoid potential litigation. Despite the pessimistic outlook from some analysts, the future of Ethereum ETFs remains a topic of interest in the crypto community.
