Ethereum Spot ETF Application Updated by Grayscale Investments
Asset management firm Grayscale Investments has submitted an updated application for an Ethereum spot ETF (exchange-traded fund) to the United States Securities and Exchange Commission (SEC). The firm aims to list and trade shares of its Ether Trust on the New York Stock Exchange (NYSE) Arca. Grayscale’s chief legal officer, Craig Salm, stated that investors deserve access to Ethereum through a spot exchange-traded product, comparing it to the Bitcoin ETF story.
SEC Chairman Faces Pressure Over Crypto Approval
Two US senators, Laphonza Butler of California and Jack Reed of Rhode Island, have urged the SEC chairman to avoid approving crypto investment products. In a letter dated March 11, the lawmakers asked the Commission to limit future crypto ETF applications. This pressure from senators could further decrease the chances of an Ethereum ETF approval.
Challenges Faced by ETH ETF Applications
The approval of 11 Bitcoin spot ETFs in January has raised expectations for Ethereum versions. However, recent delays and increased scrutiny from regulators have reduced the likelihood of an ETH ETF approval. Bloomberg ETF expert Balchunas stated that ETH funds now only have a 35% chance of approval.
Retail Investors’ Risks with ETPs
The letter from Senators Butler and Reed highlights concerns about retail investors facing significant risks from ETPs referencing thinly traded cryptocurrencies or those susceptible to fraudulent schemes. They argue that given these risks, the SEC is not obligated to approve such products.
Ethereum Price Update
As of now, the price of Ethereum stands at $3,731, reflecting a 1.2% increase in the past day.
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