Grayscale Investments, the largest crypto asset manager in the world, canceled its application for an Ethereum futures exchange-traded fund (ETF), filed through Form 19b-4.
According to one senior Bloomberg ETF analyst, James Seyffart, in a tweet, this could simply be a tactical move to protect their primary utility, which is the Ethereum ETF application. He believes that the SEC may allow the futures ETF to be set up in order to clearly satisfy investor demand for Ethereum exposure, while the spot ETF may be denied.
What is Form 19b-4?
19b-4 Form is a rule approval application submitted to the US Securities and Exchange Commission (SEC) when new equity securities are being initialized on the national exchange. Grayscale, in this case, has used the form to put forward a plan for the creation and listing of the Ethereum future ETF.
The withdrawal of the Ethereum futures ETF application further complicates the already winding road to spot ETF listings in the USA. The decision comes after Grayscale won the lawsuit against the SEC for bitcoin spot ETFs.
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