Prominent crypto asset managers Grayscale Investments and Bitwise Asset Management have halted their Ether futures ETF plans due to increased regulatory scrutiny.
Grayscale amended its SEC filing to remove references to an Ether futures ETF. The decision follows their announcement of a trio of ETF products, including a semi-spot Bitcoin ETF and a privacy-focused ETF.
Grayscale made an amended filing the day after the SEC requested the withdrawal of its Filecoin Trust registration statement. The trust, established in 2021, manages approximately $470 million in assets.
Also Read: SEC Crush Graysacle’s Hope by giving Filecoin Security Label
On May 17, Grayscale submitted an amendment to its SEC filing, removing references to an Ether futures ETF. This change occurred shortly after announcing plans to launch three ETF products, including a semi-spot Bitcoin ETF and a privacy-focused ETF investing in blockchain companies and digital assets.
Grayscale has responded to the SEC’s accusation, stating that the underlying asset does not meet the criteria to be classified as a security. The firm plans to promptly address the SEC staff with a detailed explanation of its legal standpoint.
Bitwise has decided to withdraw its application for an ETH-based futures ETF. In its amendment filing with the SEC on May 17, the crypto asset manager stated that it does not plan to proceed with the fund and no securities from the fund have been or will be sold as per the amended registration statement.
The introduction of a Bitcoin-based futures ETF in late 2021 raised expectations for a potential spot crypto ETF. However, due to recent challenges in the crypto market and increased regulatory scrutiny, there is now greater skepticism among regulators regarding the approval of such products.
