Grayscale, a U.S. cryptocurrency management giant, has unexpectedly withdrawn its application for an Ethereum (ETH) futures exchange-traded fund (ETF). The decision came just weeks before the securities regulator was due to make a mandatory ruling, sparking significant discussion within financial and crypto circles.

Grayscale filed the notice to withdraw the Grayscale Ethereum Futures Trust with the U.S. Securities and Exchange Commission (SEC) on May 7, 2024. The company initially submitted its application on September 19, 2023, aiming for a New York Stock Exchange (NYSE) listing.

The abrupt decision has raised speculation about potential private discussions between the company and the SEC. While unsure about the withdrawal's motives, James Seyffart, an ETF analyst at Bloomberg Intelligence, suggested the filing might have been a strategic move .