- Grayscale Investments, the largest crypto asset management company, has withdrawn its application to establish a futures Ethereum ETF in the US.
- CEO Michael Sonnenshein has stated that the company’s focus is on spot products, which are fundamental to its DNA.
- Despite the recent approval of spot Bitcoin ETFs in the US, analysts do not expect the SEC to approve spot Ethereum ETFs in the near future due to ongoing uncertainty about whether Ethereum is a security.
Grayscale Investments withdraws its application for a futures Ethereum ETF, shifting its focus towards spot products. Despite recent approvals for Bitcoin ETFs, analysts remain skeptical about the SEC’s stance on Ethereum.
Grayscale Withdraws Ethereum ETF Application
Grayscale Investments, the largest crypto asset management company, has withdrawn its application to establish a futures Ethereum ETF in the US. CEO Michael Sonnenshein revealed this strategic shift in a recent interview, stating, “We have decided to focus on spot products at Grayscale. This is fundamental to our DNA.”
Shift in Focus to Spot Products
The decision to withdraw the application comes amid the presence of several different futures contracts products in the market. Sonnenshein explained, “Sometimes we apply for a product. This does not mean it will be launched.” The company’s shift in focus towards spot products reflects its core strategy and market positioning.
Analysts Skeptical About Approval of Spot Ethereum ETFs
Following the approval of spot Bitcoin ETFs in the US, attention has turned to the potential for spot Ethereum ETFs. Several firms, including Grayscale, BlackRock, VanEck, ARK Invest, Fidelity, Invesco, and Hashdex, have applied to establish such a fund. However, analysts remain skeptical about the SEC’s approval of these applications in the near future due to ongoing uncertainty about whether Ethereum is a security.
Conclusion
While Sonnenshein did not comment specifically on the SEC’s views on Ethereum, he expressed optimism that the SEC would “do the right thing for investors.” As the crypto market continues to evolve, the strategic decisions of major players like Grayscale will play a crucial role in shaping the industry’s future.
