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Despite the withdrawal, the fate of spot Ethereum ETFs remains uncertain as the SEC has not provided a specific timeline for a decision.

Grayscale Investments, the worlds largest cryptocurrency asset manager, has withdrawn its application for an Ether futures ETF just weeks before the SEC was set to rule on several spot ETH ETFs. The application, filed in September 2023, proposed an ETF that would track Ether futures contracts on the Chicago Mercantile Exchange (CME). The sudden withdrawal has left analysts scrambling to understand Grayscales strategic shift.

Bloomberg ETF analyst James Seyffart has speculated that Grayscale might have been using the futures ETF as a strategic tool to pressure the SEC into approving a spot Ether ETF, a product that directly tracks the price of Ethereum. However, this speculation mirrors the broader market sentiment, as the withdrawal comes just weeks before the SEC has deadlines to rule on several spot Ether ETF applications from other companies.

The SECs stance on spot Ether ETFs remains unclear. In a recent interview, SEC Chair Gary Gensler acknowledged the applications but did not provide a specific timeline for a decision. Grayscales withdrawal leaves the fate of spot Ethereum ETFs uncertain. While applications from other companies are still expected in the coming months, industry experts anticipate a similar batch decision-making process from the SEC, mirroring its approach with spot Bitcoin ETFs in January 2023.

Grayscales decision to withdraw it ETH futures application has dampened market demand for Ethereum. Despite the positive sentiment surrounding the broader crypto market, ETH price uptrend now appears to be struggling for momentum.

At the time of writing on May 8, Ethereum price is exchanging hands at $2,991, reflecting a 7.38% dip over the last 48 hours, as depicted in the ETH daily price chart below.

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Ethereum ETF: Grayscale Withdraws Application 3 Weeks from SEC Verdict - FX Empire