Grayscale has decided to withdraw its application to list its ethereum trust, ETHE, according to a filing with the U.S. Securities and Exchange Commission (SEC). James Seyffart, an exchange-traded funds (ETF) analyst at Bloomberg, expressed confusion over Grayscale’s decision.
The retraction filing by Grayscale’s Strategic Ethereum Trust Raises Questions
Grayscale has retracted its application to list and trade its ether trust, ETHE, as stated in a filing with the SEC. This move comes at a time when the general consensus within the community is that the chances of the SEC approving an ETF based on ETH are quite slim. Analysts and prediction markets have assigned a very low probability to the SEC’s approval, with some even suggesting that it is unlikely to happen.
After the withdrawal, James Seyffart, an ETF analyst at Bloomberg, commented on the retraction through a post on the social media platform X. Seyffart said, “This is interesting. Grayscale just withdrew their filing for an ethereum futures ETF. In my opinion, this was a strategic move to create a similar situation that allowed Grayscale to win the GBTC lawsuit (approve futures, deny spot).”
Seyffart further added, “I don’t know why they would do this honestly. In my mind, they might as well have let the SEC write up an approval or denial for an ETH futures ETF and proceed from there. Maybe the SEC had a conversation with Grayscale about this, and whatever was said convinced Grayscale to withdraw? (This is just a guess).”
While the reasons behind Grayscale’s decision are uncertain, speculation continues and the chances of approval have decreased even further. As the crypto community considers the implications, this withdrawal could indicate a complete shift in expectations regarding physically-settled ETFs based on Ethereum.
What are your thoughts on Grayscale’s retraction of its ethereum ETF? Feel free to share your opinions in the comments section below.
