10 months ago
Bloomberg ETF expert James Seyffart thinks Grayscale’s Ether futures ETF exertion is conscionable a ploy to country the SEC to o.k. its spot Ether ETF.
Grayscale Investments is utilizing its Ether (ETH) futures exchange-traded money (ETF) exertion arsenic a “trojan horse” to country the United States Securities and Exchange Commission into approving its spot Ether ETF, says Bloomberg ETF expert James Seyffart.
Seyffart said successful a Nov. 15 X (Twitter) post pursuing the SEC delaying Grayscale’s ETH futures ETF bid that helium believes if the SEC approves Grayscale’s application, past it would alteration Grayscale to reason for the support of its spot Ether ETF application.
If the SEC denies Grayscale’s bid, the plus manager could reason the SEC is treating Bitcoin (BTC) and Ether futures ETFs otherwise by allowing 1 nether the Securities Act of 1933 but not the other.
“Watch [the SEC] effort to either o.k. and reason wherefore this is antithetic from spot. Or Deny and reason wherefore 1933 enactment products are meaningfully antithetic from 1940 enactment products. Both are atrocious for SEC [in my opinion]. Genius move.”Grayscale’s Ether futures ETF bid was submitted via a signifier 19b-4 — which exchanges record to pass the SEC of a security-based swap request. Seyffart said nary of the 40 oregon truthful approved Ether ETF products went done the 19b-4 support process.
Seyffart was initially unsure wherefore Grayscale filed its Ether futures ETF via a 19b-4. He present believes Grayscale is playing “chess” with the SEC by utilizing the Ether Futures ETF arsenic a “trojan horse” to get a 19b-4 bid from the regulator to country them into a lose-lose situation.
I was initially unsure wherefore they would adjacent record for this. But my thoughts person evolved implicit the past fewer weeks and they are fundamentally this:
Grayscale is playing Chess, not checkers here. They're apt hoping to unit the SEC into issuing a 19b-4 determination connected an ETH futures ETF.…
Seyffart and Scott Johnsson, General President astatine Van Buren Capital General, agreed Grayscale wouldn’t motorboat the Ether futures ETF.
“Doubtful this merchandise ever trades, but utile arsenic a vas to get spot ETH implicit the decorativeness line,” Johnsson said.
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Seyffart’s comments travel arsenic the SEC delayed its determination connected Grayscale’s Ether futures ETF connected Nov. 15 — 2 days earlier than its Nov. 17 deadline. Seyffart said helium wasn’t amazed by the delay.
Hashdex’s application to person its Bitcoin futures exchange-traded money (ETF) into a spot merchandise was besides enactment connected clasp by the securities regulator connected Nov. 15.
BlackRock shared a akin sentiment to Seyffart past week, arguing that the SEC doesn't person a morganatic reason to dainty cryptocurrency spot and futures ETF applications differently.
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