Grayscale Withdraws 19b-4 Filing for Ethereum Futures ETF, Shifts Focus to XRP
NAIROBI (CoinChapter.com) — Grayscale Investments unexpectedly withdrew its application for an Ethereum Futures ETF just weeks before the SEC’s decision deadline. The surprise withdrawal signals a potential shift in strategy, with Grayscale now seemingly focused on pursuing an XRP ETF.
Grayscale withdrew its 19b-4 application for the Ethereum Futures Trust ETF. It initially applied on Sep. 19, 2023. The ETF aimed to list on NYSE Arca, pending SEC approval. However, on May 7, 2024, Grayscale filed a withdrawal notice with the SEC. It abandoned its pursuit of an Ethereum futures ETF, at least for now.
The Journey of the Ethereum Futures ETF Application
On Sep. 19, 2023, Grayscale filed its 19b-4 application to list its Ethereum Futures Trust as an ETF, sparking interest among investors and regulators alike.
This proposal, published for public comment on Oct. 3, 2023, suggested a new opportunity for investors to engage with Ethereum through a regulated, futures-based product. After extended periods designated by the SEC for consideration, the final decision was set for May 30, 2024.
However, on May 3, 2024, Grayscale chose to retract its filing, withdrawing from the process entirely. The reasons behind this decision remain unclear, particularly given the proximity to the SEC’s final ruling date. Analysts like James Seyffart from Bloomberg initially speculated that the ETF might serve as a strategic asset to leverage approval for a spot Ether ETF.
Speculation and Strategic Shifts in ETF Applications
Grayscale’s unexpected withdrawal occurs amid broader SEC deliberations on cryptocurrency ETFs, including several pending spot Ether ETF applications with final decisions due in late May 2024. James Seyffart expressed confusion over Grayscale’s strategic pullback, especially as it coincides with critical SEC decision timelines for other cryptocurrency funds.
Grayscale’s withdrawal of the Ethereum Futures ETF application signals a potential shift in strategy for the digital asset manager. While the reasons behind this move remain unclear, speculations suggest Grayscale may focus on other cryptocurrency-related products, such as an XRP-based ETF.
Sources familiar with the matter indicate that Grayscale has already begun the application process for an XRP ETF, potentially capitalizing on the growing interest and adoption of the XRP Ledger and its native token.
The XRP Ledger’s scalability and low transaction fees have long been touted as potential advantages over other blockchain networks. If Grayscale’s XRP ETF gains regulatory approval, it could lead to increased institutional investment and mainstream adoption of the XRP token.
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