Crypto asset manager Grayscale Investments has withdrawn its application for an Ethereum Futures Trust with the U.S. Securities and Exchange Commission (SEC). 

In a filing on Tuesday, the SEC noted that Grayscale had withdrawn its application on May 3 after the initial application was filed on Sept. 19, 2023. The SEC has delayed issuing a decision on whether to approve or deny the application three times already, with the final decision due on May 30.

“This was essentially a trojan horse filing in my view, in order to create the same circumstances that allowed Grayscale to win the GBTC lawsuit,” said James Seyffart, a Bloomberg ETF analyst, in a post on X.

However, he expressed confusion over the reason that Grayscale would prematurely withdraw its application for an ether futures ETF, speculating that internal conversations between executives at Grayscale and the regulator might have spurred the decision.

“If you don’t want to piss off the SEC, withdrawing and re-filing is less work for the SEC,” said Seyyfart. “But at the same time it means there’s no way for Grayscale or anyone to sue now.”

Sentiment around a spot ether approval has turned increasingly negative, as Polymarket shows that only 7% of market participants believe a spot ether ETF will be approved by May 31. May 23 is the final deadline for the SEC to approve applications from VanEck and Ark 21Shares.

CORRECTION (May 8, 2024 10:29 a.m. ET): May 23 is the final deadline for the SEC to approve applications from VanEck and Ark 21Shares, not May 31.