Grayscale Withdraws Proposal for Ethereum Futures ETF Listing
The application for the Grayscale Ethereum Futures Trust ETF, filed by NYSE Arca, Inc. in September last year, was withdrawn on May 3, as per a Securities and Exchange Commission filing.
“On May 3, 2024, the Exchange withdrew the proposed rule change (File No. SRNYSEARCA-2023-63),” the filing stated.
The reason for the withdrawal remains unclear. Both NYSE Arca and Grayscale declined to comment.
Previously, the SEC had delayed considering Grayscale’s ether futures ETF, with the most recent delay in March. However, the SEC had previously approved a series of ether futures ETFs in October 2023, including offerings from ProShares, VanEck, and Bitwise.
The SEC has also delayed decisions on spot Ethereum ETFs, including one from Grayscale, in recent weeks. The latest delay occurred on Monday, pushing back the timeline for the Invesco Galaxy Ethereum ETF to July 5.
Optimism for SEC approval of such products has waned in recent months. Bloomberg ETF analyst Eric Balchunas, for example, has reduced his estimate of the likelihood of a spot Ethereum ETF approval by late May from about 70% to 25%.
