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Grayscale Investments is utilizing its Ether (ETH) futures exchange-traded fund (ETF) software as a “computer virus” to nook america Securities and Change Fee into approving its spot Ether ETF, says Bloomberg ETF analyst James Seyffart.
Seyffart mentioned in a Nov. 15 X (Twitter) submit following the SEC delaying Grayscale’s ETH futures ETF bid that he believes if the SEC approves Grayscale’s software, then it might allow Grayscale to argue for the approval of its spot Ether ETF software.
If the SEC denies Grayscale’s bid, the asset supervisor might argue the SEC is treating Bitcoin (BTC) and Ether futures ETFs in a different way by permitting one beneath the Securities Act of 1933 however not the opposite.
“Watch [the SEC] attempt to both approve and argue why that is completely different from spot. Or Deny and argue why 1933 act merchandise are meaningfully completely different from 1940 act merchandise. Each are dangerous for SEC [in my opinion]. Genius transfer.”
Grayscale’s Ether futures ETF bid was submitted through a type 19b-4 — which exchanges file to tell the SEC of a security-based swap request. Seyffart mentioned not one of the 40 or so authorized Ether ETF merchandise went by the 19b-Four approval course of.
Seyffart was initially uncertain why Grayscale filed its Ether futures ETF through a 19b-4. He now believes Grayscale is taking part in “chess” with the SEC by utilizing the Ether Futures ETF as a “computer virus” to acquire a 19b-Four order from the regulator to nook them right into a lose-lose state of affairs.
I used to be initially uncertain why they’d even file for this. However my ideas have advanced over the previous couple of weeks and they’re mainly this:
Grayscale is taking part in Chess, not checkers right here. They’re doubtless hoping to pressure the SEC into issuing a 19b-Four resolution on an ETH futures ETF.…— James Seyffart (@JSeyff) November 15, 2023
Seyffart and Scott Johnsson, Normal President at Van Buren Capital Normal, agreed Grayscale wouldn’t launch the Ether futures ETF.
“Uncertain this product ever trades, however helpful as a vessel to get spot ETH over the end line,” Johnsson mentioned.
Associated: Bitcoin ETFs will drive institutional adoption in 2024 — Galaxy Digital’s Mike Novogratz
Seyffart’s feedback come because the SEC delayed its resolution on Grayscale’s Ether futures ETF on Nov. 15 — two days sooner than its Nov. 17 deadline. Seyffart mentioned he wasn’t stunned by the delay.
Hashdex’s software to transform its Bitcoin futures exchange-traded fund (ETF) right into a spot product was additionally placed on maintain by the securities regulator on Nov. 15.
BlackRock shared the same sentiment to Seyffart final week, arguing that the SEC does not have a respectable cause to deal with cryptocurrency spot and futures ETF functions in a different way.
Journal: Bitcoin ETF optimist and Worldcoin skeptic Gracy Chen: Corridor of Flame
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