One day after Grayscale pulled back its application for the Ethereum Futures ETF, Grayscale CEO Michael Sonnenshien confirmed that they are not abandoning their efforts. 

Sonnenhein stated that Grayscale would continue to transform its Ethereum Trust (ETHE) into the spot Ethereum ETF, following a similar approach to what it did when converting its Bitcoin Trust GBTC into a spot Bitcoin ETF. 

During the Financial Times event on Wednesday, Sonnenshein remarked, “At Grayscale, we decided to focus our energy on our spot products. That’s really core to our DNA.”

In response to their decision to withdraw the Ethereum Futures ETF application, the CEO noted that this move was prompted by the abundance of existing futures products in the current market landscape. 

Grayscale, alongside other leading financial giants such as VanEck, Fidelity, BlackRock, and Ark Invest, has submitted applications to the SEC to introduce the spot Ethereum ETF to the market. However, two days ago, the SEC postponed its decision on the Invesco Galaxy Ethereum ETF until July. 

At this stage, crypto enthusiasts have been eagerly anticipating the debut of the spot Ethereum ETF, with the initial deadline approaching closer on May 23. However, market analysts have not been optimistic about the SEC’s approval, primarily because Ethereum’s classification as a ‘security’ remains uncertain. 

Meanwhile, Ethereum is set to undergo notable updates on its blockchain. A recent CryptoQuant report underscores that Ethereum has been exhibiting inflationary tendencies since the Dencun upgrade in March.

Following the merge, which marked Ethereum’s shift from a Proof-of-Work (PoW) to a Proof-of-Stake consensus mechanism, the network started burning gas fees at a notable pace, resulting in a massive decrease in the growth of ETH circulating supply. 

Today, the market maintained a steady atmosphere while Ethereum hovered around the $3,000 level. Despite the volatility, ETH derivatives volume for May has surged by nearly 60%, higher than Bitcoin.