Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Grayscale ETH futures ETF a ‘trojan horse’ for spot Ethereum ETF: Analyst

Grayscale ETH futures ETF a ‘trojan horse’ for spot Ethereum ETF: Analyst

CointimeCointime2023/11/20 16:24
By:Cointime

Grayscale Investments is using its Ether  futures exchange-traded fund (ETF) application as a “trojan horse” to corner the United States Securities and Exchange Commission into approving its spot Ether ETF, says Bloomberg ETF analyst James Seyffart.

Seyffart said in a Nov. 15 X (Twitter)  post  following the SEC delaying Grayscale’s  ETH futures ETF bid  that he believes if the SEC approves Grayscale’s application, then it would enable Grayscale to argue for the approval of its spot Ether ETF application.

If the SEC denies Grayscale’s bid, the asset manager could argue the SEC is treating Bitcoin  and Ether futures ETFs differently by allowing one under the Securities Act of 1933 but not the other.“Watch [the SEC] try to either approve and argue why this is different from spot. Or Deny and argue why 1933 act products are meaningfully different from 1940 act products. Both are bad for SEC [in my opinion]. Genius move.”

Grayscale’s Ether futures ETF bid was submitted via a form 19b-4 — which exchanges file to inform the SEC of a security-based swap request. Seyffart said none of the 40 or so approved Ether ETF products went through the 19b-4 approval process.

Seyffart was initially unsure why Grayscale filed its Ether futures ETF via a 19b-4. He now believes Grayscale is playing “chess” with the SEC by using the Ether Futures ETF as a “trojan horse” to obtain a 19b-4 order from the regulator to corner them into a lose-lose situation.

Seyffart and Scott Johnsson, General President at Van Buren Capital General,  agreed  Grayscale wouldn’t launch the Ether futures ETF.

“Doubtful this product ever trades, but useful as a vessel to get spot ETH over the finish line,” Johnsson said.

Seyffart’s comments come as the SEC  delayed  its decision on Grayscale’s Ether futures ETF on Nov. 15 — two days earlier than its Nov. 17 deadline. Seyffart said he wasn’t surprised by the delay.

Hashdex’s  application  to convert its Bitcoin futures exchange-traded fund (ETF) into a spot product was also put on hold by the securities regulator on Nov. 15.

BlackRock shared a similar sentiment to Seyffart last week, arguing that the SEC  doesn't have a legitimate reason  to treat cryptocurrency spot and futures ETF applications differently.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!