FOX reporter Eleanor Terrett wrote on X platform that Grayscale never submitted an S-1 application for its Ethereum futures ETF, so the application is incomplete. Before considering its spot application, the SEC may want to see a completed futures application. It also stated that since its launch last year, demand from investors for existing ETH futures ETFs has been relatively low.

Earlier today, Grayscale submitted a notice to the US SEC on May 7 to withdraw its 19b-4 application for its Ethereum futures ETF, leaving the SEC with only three weeks to make a decision on its application.

The SEC originally planned to make a final decision on Grayscale's Ethereum futures ETF on May 30. Grayscale initially submitted the 19b-4 application on September 19, 2023, hoping to list its Ethereum futures ETF on the New York Stock Exchange.

Bloomberg ETF analyst James Seyffart initially believed that Grayscale planned to strategically use its Ethereum futures ETF as a "Trojan horse" to force the SEC to approve its Ethereum spot ETF. But he is confused about why Grayscale is now withdrawing its application, as the SEC will be forced to decide on at least one Ethereum spot ETF application by May 23.