Bloomberg Analyst Reveals the Real Hidden Reason for Grayscale’s Ethereum Futures ETF Withdrawal

In a recent development, Bloomberg ETF analyst Eric Balchunas contradicted Grayscale CEO Michael Sonneshein’s optimistic outlook regarding the approval of Ethereum Spot ETFs. Sonneshein previously expressed his belief that these ETFs could gain approval in May.

But Balchunas has a different perspective. “I disagree. We’re pessimistic as always. So it might happen at some point, but I don’t think it’s within a year.” Balchunas also added that any rejection and elections in November are important variables that could change the outlook.

Interestingly, Balchunas also noted that Grayscale withdrew the ’33 Act Ether Futures ETF because they wanted to focus on spot products. Balchunas made the following statement:

“The only reason to file this under the ’33 Act’ (versus the ’40 Act) was to enable litigation. Withdrawing the application essentially closes the door for anyone to file a lawsuit.”

According to Balchunas, he claimed that the reason why Grayscale withdrew the application was not to present a huge ETF to Grayscale on a silver platter. In addition, the analyst said that Grayscale was the main company that ensured the BlackRock Bitcoin Spot ETFs were approved, yet it was criticized for outflows from its own fund.

*This is not investment advice.

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