Quick Take:

• Grayscale’s Ethereum Futures Trust ETF application withdrawn on May 3.
• SEC delays decisions on spot Ethereum ETFs.
• Recent delay extends timeline for Invesco Galaxy Ethereum ETF to July 5.

Title: Grayscale’s Ethereum Futures Trust ETF Proposal Withdrawn: SEC Delays Decision on Spot Ethereum ETFs

Quick Take:

• Grayscale’s Ethereum Futures Trust ETF application withdrawn on May 3.
• SEC delays decisions on spot Ethereum ETFs.
• Recent delay extends timeline for Invesco Galaxy Ethereum ETF to July 5.

The proposal to list and trade shares of Grayscale’s ether futures exchange-traded fund (ETF) has hit a roadblock, as the application was withdrawn, according to recent filings with the Securities and Exchange Commission (SEC).

Filed by NYSE Arca, Inc. in September last year, the application for the Grayscale Ethereum Futures Trust ETF was withdrawn on May 3, marking a significant development in the ETF landscape.

The reason behind the withdrawal remains unclear, with both NYSE Arca and Grayscale refraining from comment on the matter.

This withdrawal comes amidst a series of delays by the SEC in considering various Ethereum-related ETFs, including spot products. The most recent delay, announced on Monday, pushes the decision timeline for the Invesco Galaxy Ethereum ETF to July 5, adding further uncertainty to the approval process.

Optimism surrounding the SEC’s approval of spot Ethereum ETFs has waned in recent months, with industry analysts revising their estimates downward. Bloomberg ETF analyst Eric Balchunas, for instance, has reduced the likelihood of a spot Ethereum ETF approval by late May from approximately 70% to just 25%.

While the SEC has previously given the green light to a batch of Ethereum futures ETFs in October 2023, including offerings from ProShares, VanEck, and Bitwise, the fate of spot Ethereum ETFs remains uncertain, with regulatory hurdles continuing to pose challenges for industry participants.