Grayscale, a digital asset manager, has withdrawn its filing for an Ethereum futures exchange-traded fund (ETF), leading traders to speculate on Ether’s short-term price performance.
The company submitted a 19b-4 application to the SEC on September 19 last year, with a decision expected on May 30. However, Grayscale decided to pull out of the plan, filing a withdrawal notice with the SEC on May 7.
Analysts suggest Grayscale initially pursued the Ethereum futures ETF to push the SEC into approving its spot Ethereum ETF. The withdrawal has sparked questions, with some speculating that discussions with the SEC may have influenced Grayscale’s decision.
The SEC is also set to decide on VanEck’s spot Ethereum ETF application on May 23, with low approval odds. Short positions on Ether have exceeded long positions as traders anticipate a price drop, reflecting pessimism regarding SEC approval of Ether spot ETFs.
Regulatory scrutiny of the Ethereum Foundation has also raised concerns about Ether’s classification as a security. As of writing, Ether was trading at $3,001 according to CoinGecko.
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