Grayscale has withdrawn its proposal to list and trade shares of the Ethereum (ETH) futures exchange-traded fund, according to a recent filing. The request for the Grayscale Ethereum Futures Trust ETF was introduced by NYSE Arca, Inc. in September 2023 but was withdrawn on May 3, as stated in a US Securities and Exchange Commission (SEC) document. The SEC has been delaying its decision on Ethereum ETF applications, with Grayscale’s application being postponed in March. However, the regulator had previously approved several Ethereum ETFs in October last year. Grayscale’s legal director, Craig Salm, has expressed his belief that Ethereum ETFs should be approved by the SEC and that the perceived lack of SEC involvement should not be seen as a negative sign. Following Grayscale’s withdrawal of its ETF application, Ether traders have increased their bearish bets on the cryptocurrency, with Ether experiencing a 4% drop in the last 24 hours. The withdrawal prompted traders to establish around $345 million in short positions, which would be liquidated if the Ether price rose by 3%. Conversely, a 3% price decrease could eliminate around $237 million in long positions. It is important to note that the views expressed in this article are for informational purposes only and do not constitute financial advice. Investing or trading cryptocurrencies carries a risk of financial loss.
