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Seyffart contends that Grayscale’s maneuver reflects a calculated strategy to influence SEC decisions and secure approval for its spot Ether ETF.
Grayscale’s ETH Futures ETF-BTC
Differently treating Ether futures ETFs and $43,828, the Securities Act of 1933 allows one but not the other. This regulatory distinction creates a unique landscape for cryptocurrency-curious investment.
Grayscale’s ETH Futures ETF-ETH
Grayscale strategically employs its $2,346 futures ETF application as a “trojan horse,” aiming to influence the United States Securities and Exchange Commission to approve its spot Ether ETF, as per Bloomberg ETF analyst James Seyffart.
Through a Twitter post on November 15, Seyffart conveyed that the potential SEC approval of Grayscale’s ETH futures ETF could substantially strengthen the company’s position, strategically providing leverage to advance the approval process for its spot Ether ETF application.
If the SEC denies Grayscale’s bid, the asset manager might contend that the SEC is exhibiting disparate treatment between Bitcoin and other digital assets.
Grayscale’s ETH Futures ETF-KEY POINTS
Grayscale’s application for an Ether futures ETF, submitted through a 19b-4 form detailing a security-based swap request to the SEC, stands out from the usual process, as none of the around 40 approved Ether ETFs underwent the 19b-4 approval procedure.
Originally perplexed by Grayscale’s decision to submit its Ether futures ETF through a 19b-4, Seyffart has shifted his perspective, interpreting it as a deliberate maneuver. He posits that Grayscale is strategically navigating a ” chess ” game with the SEC, utilizing the Ether futures ETF as a strategic “trojan horse” to maneuver the regulator into a challenging, no-win situation—an observation derived from his analysis.
According to Seyffart and Scott Johnsson of Van Buren Capital General, Grayscale’s Ether futures ETF might not launch, as they perceive it more as a strategic tool than a tradable product.
The SEC’s decision delay on Grayscale’s Ether futures ETF two days before the Nov. 17 deadline aligns with Seyffart’s expectations. On the same day, the securities regulator also put a hold on Hashdex’s attempt to convert its Bitcoin futures ETF into a spot product. Echoing a similar perspective, BlackRock argues that the SEC lacks a valid reason to treat cryptocurrency spot and futures ETF applications differently.
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