Grayscale and Bitwise distance themselves from Ether futures ETF plans

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Two prominent crypto managers, Grayscale Investments and Bitwise Asset Management, have canceled their Ether (ETH) futures exchange-traded fund (ETF) plans amid increased scrutiny from U.S. regulators.

On May 17, Grayscale filed an amendment to the Securities and Exchange Commission (SEC) to remove references to Ether futures ETFs. The amendment comes less than a week after sharing plans to launch three ETF products. His other two flagship products include the Semi-Spot Bitcoin (BTC) ETF, which invests in the spot BTC market, and the Privacy ETF, which focuses on investing in privacy-focused blockchain companies and digital assets. increase.

Grayscale’s amendment to the ETF filing comes just days after the SEC asked the asset manager to withdraw the Filecoin Trust’s filing. Regulators have warned that its underlying asset, Filecoin (FIL), qualifies as a security.

grayscale answered In response to the SEC complaint, it argued that the underlying assets did not qualify as securities. The company said it “intends to provide the SEC staff with a briefing on the legal basis for Grayscale’s position.”

Meanwhile, Bitwise has completely withdrawn its application to launch an ETH-based futures ETF.In that amendment filing The crypto asset manager told the SEC on May 17 that it “does not seek the validity of the fund and that no securities of the fund have been sold or will be sold pursuant to the above post-effectiveness amendments.” No,” he claimed. Registration Statement of the Trust. “

Related: GBTC approval could return ‘billions of dollars’ to investors: Grayscale CEO:

Bitwise did not respond to Cointelegraph’s request for comment on this matter by the time of publication of this article.

With a Bitcoin-based futures ETF debuting in the final quarter of 2021, many in the crypto industry believe there will be a spot crypto ETF. But two years on, and a string of cryptocurrency carnage in 2022, regulators have grown more skeptical of such products.

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