Grayscale Investments, the asset manager behind the world's largest Ethereum trust, announced plans to convert its Ethereum trust into spot exchange-traded products. CEO Michael Sonnenshein stated that the company will withdraw its application for a futures-based Ethereum ETF to focus on this new initiative. This strategic shift aims to prevent outflows from the Ethereum trust upon conversion, and involves measures to delay other issuers from launching a similar spot Ethereum ETF. Analysts consider Grayscale's withdrawal from the futures ETF application a significant setback for the fund's approval. Meanwhile, JPMorgan analysts believe that the SEC's recent actions against Robinhood are unlikely to impact the approval of spot Ether ETFs.