US Withdraws Previous Year’s Application for Ethereum (ETH): A Major Shift in Crypto Landscape

• The U.S. Securities and Exchange Commission (SEC) has seen a withdrawal of an application for a futures-based Ethereum ETF by Grayscale, according to SEC records.
• The application, made in September 2023 by NYSE Arca to list an Ethereum exchange-traded fund (ETF) investing in futures contracts, was withdrawn for an unknown reason.
• The SEC has previously delayed decisions on Grayscale’s futures-based Ethereum ETF several times. However, ProShares, VanEck, and Bitwise have previously received permission to establish futures-based Ethereum ETFs.

Grayscale withdraws its application for a futures-based Ethereum ETF, adding another twist to the ongoing saga of Ethereum’s status as a security in the U.S.

Grayscale Withdraws Ethereum ETF Application

Grayscale, a leading digital asset manager, has withdrawn its application for a futures-based Ethereum ETF. The application was initially submitted to the SEC by NYSE Arca in September 2023. The reason for the withdrawal remains unknown. This development adds another layer of complexity to the ongoing discussions surrounding Ethereum’s status as a security in the U.S.

Previous Delays by the SEC

The SEC has previously postponed decisions regarding Grayscale’s futures-based Ethereum ETF multiple times. Despite these delays, other financial institutions such as ProShares, VanEck, and Bitwise have successfully received approval to establish futures-based Ethereum ETFs. These approvals indicate a growing acceptance of Ethereum-based financial products, despite the regulatory ambiguity surrounding Ethereum’s status.

Spot Ethereum ETF Applications Also Delayed

In addition to futures-based ETFs, the SEC has also delayed several applications for spot Ethereum ETFs. Notably, a decision regarding the Invesco Galaxy Ethereum ETF was postponed earlier this week to July 5. Analysts remain skeptical about the approval of spot Ethereum ETFs within this month, given the ongoing regulatory uncertainty.

Conclusion

The withdrawal of Grayscale’s futures-based Ethereum ETF application adds another twist to the ongoing saga of Ethereum’s status as a security in the U.S. While other institutions have received approval for similar products, the SEC’s repeated delays and the recent withdrawal raise questions about the future of Ethereum-based financial products. As the crypto industry awaits further regulatory clarity, the developments surrounding Ethereum ETFs will continue to be a key area to watch.