Ethereum ETF Application Withdrawn by Grayscale just 3 Weeks before SEC Decision

Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis on all things related to the Stock Market, trading, and Wall Street. Today, we are diving into the recent news surrounding Grayscale Investments and their decision to withdraw their application for an Ether futures ETF.

Grayscale, known as the world’s largest cryptocurrency asset manager, shocked the market by pulling their application just weeks before the SEC was set to rule on several spot Ethereum ETFs. The application, which was filed in September 2023, aimed to create an ETF that tracked Ether futures contracts on the Chicago Mercantile Exchange (CME). This sudden move has left many analysts wondering about Grayscale’s strategic intentions.

Related:  Market in 2023 faces difficult challenge to replicate success post banner year

Some experts, like Bloomberg ETF analyst James Seyffart, believe that Grayscale may have been using the futures ETF as a strategic tool to push the SEC into approving a spot Ether ETF, which directly follows the price of Ethereum. However, the speculation around this decision aligns with the uncertainty surrounding the SEC’s stance on spot Ethereum ETFs.

SEC Chair Gary Gensler recently acknowledged the applications for spot Ether ETFs but did not provide a specific timeline for a decision. With Grayscale’s withdrawal, the fate of spot Ethereum ETFs remains uncertain. While other companies are expected to submit applications in the coming months, there is anticipation for a collective decision-making process from the SEC, similar to what happened with spot Bitcoin ETFs in January 2023.

Related:  Stock market news lives updates: Stocks rise as Fed minutes signal rate hike slowdown

The impact of Grayscale’s decision can already be seen in the market, with Ethereum facing downward pressure. Despite positive sentiment in the broader crypto market, ETH price momentum has slowed down. As of May 8, Ethereum is trading at $2,991, reflecting a 7.38% decrease over the last 48 hours.

Stay tuned to Extreme Investor Network for more updates and in-depth analysis on the latest developments in the Stock Market, trading, and Wall Street. Don’t miss out on valuable insights that can help you navigate the ever-changing world of finance with confidence.

Source link