Proposal for Grayscale's Ethereum Futures Trust ETF has been withdrawn
Quick Take
- The application for the Grayscale Ethereum Futures Trust ETF was withdrawn on May 3.
- The SEC has delayed deciding on spot Ethereum ETFs over the past few weeks.
A proposal to list and trade shares of Grayscale's ether futures exchange-traded fund has been withdrawn, according to a new document filed on Tuesday.
The application for the Grayscale Ethereum 
ETH
-1.35%
Futures Trust ETF, which was filed by NYSE Arca, Inc., in September last year, was withdrawn on May 3, according to a Securities and Exchange Commission filing.
"On May 3, 2024, the Exchange withdrew the proposed rule change (File No. SRNYSEARCA-2023-63)," according to that filing.
It is unclear why the proposal was withdrawn. NYSE Arca declined to comment. Grayscale did not immediately respond to a request for comment.
The SEC has previously delayed considering Grayscale's ether futures ETF, the most recent being in March. Yet the SEC previously greenlit a batch of ether futures ETFs in October 2023, including from ProShares, VanEck and Bitwise.
Delays for spot products
The SEC has delayed making a decision on spot Ethereum ETFs, including one from Grayscale, over the past few weeks. The most recent delay was on Monday, pushing back the timeline for the Invesco Galaxy Ethereum ETF to July 5.
Optimism for the SEC approving such a product has dwindled over the past few months. For example, Bloomberg ETF analyst Eric Balchunas has lowered his estimate of the chances of a spot Ethereum ETF approval by late May from about 70% to 25%.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
