- Amid the growing tension over the likelihood of a spot Ethereum ETF, Bloomberg analyst Eric Balchunas has issued a new timeline to watch for approval.
- Several spot Ethereum ETF applications are waiting to be approved by the United Securities and Exchange Commission (SEC).
- Grayscale Investment recently withdrew its application for Ethereum Futures ETF, claiming that it has several futures products already available in the market today.
As the crypto industry awaits the approval of a spot Ethereum ETF, Bloomberg analyst Eric Balchunas provides a new timeline for potential approval. Grayscale Investment has withdrawn its Ethereum Futures ETF application, adding another twist to the ongoing debate.
Bloomberg Analyst’s Take on Spot Ethereum ETF Approval
Senior Bloomberg Analyst Eric Balchunas does not believe that the approval for spot Ethereum ETF applications will happen soon. He expressed his pessimism at an event hosted by the Financial Times, responding to a statement from Grayscale’s CEO Michael Sonnenshein who seemed very positive about getting approval from the securities regulator on its application.
Grayscale’s Withdrawal from Ethereum ETF Race
Grayscale Investment recently withdrew its application for Ethereum Futures ETF. The firm’s CEO Michael Sonnenshein stated that Grayscale will continue to focus on converting its Ethereum Trust (ETHE) into a spot Ethereum ETF. Sonnenshein further explained why the company decided to take a break from the Ethereum ETF race, expressing confidence in approval. However, Balchunas disagreed with this optimistic outlook, predicting that the approval may come about a year later.
Why Did Grayscale Withdraw its ETH ETF Filing?
The Bloomberg analyst believes the ‘excuse’ presented by Sonnenshein for the withdrawal may not be the actual reason. Balchunas highlighted that the ETF filing was made under the “33 Act Ether Futures ETF” to provide an opening for a potential lawsuit. However, Grayscale’s decision to withdraw defeats the purpose entirely as it shuts the “door for anyone to sue basically.”
Conclusion
The debate around the approval of a spot Ethereum ETF continues to be a controversial subject in the industry. While some remain optimistic, others like Bloomberg analyst Eric Balchunas have a more pessimistic outlook. As the crypto industry awaits the SEC’s decision, the withdrawal of Grayscale’s application adds another layer to the ongoing discussion.
