Grayscale Investments, the leading global manager of cryptocurrencycurrency assets, has withdrawn its application for an Ethereum futures exchange-traded fund (ETF) that was submitted using Form 19b-4.
According to James Seyffart, a senior analyst at Bloomberg ETF, this action may be a strategic maneuver to safeguard their main function, which is the Ethereum ETF application. He opines that the SEC might grant permission for the establishment of a futures ETF to adequately meet the investors’ desire for Ethereum exposure, while the approval for a spot ETF may be withheld.
Do You Know About Form 19b-4?
Form 19b-4 is a document for rule approval that is submitted to the US Securities and Exchange Commission (SEC) when new equity securities are being initiated on the national exchange. Grayscale has utilized the format to propose a concept for establishing and listing an Ethereum future ETF.
The withdrawal of the Ethereum futures ETF application adds extra complexity to the already intricate process of launching spot ETFs in the United States. Grayscale’s victory in the action against the SEC over bitcoin spot ETFs has led to this decision.
Also read: Grayscale is Optimistic About Ethereum ETF Approval Despite SEC’s lack of Engagement
