Grayscale Chief Legal Officer Optimistic About Ethereum Spot ETFs
Grayscale Chief Legal Officer (CLO), Craig Salm, shared his positive outlook on the approval of Ethereum spot Exchange-Traded Funds (ETFs) by the United States Securities and Exchange Commission (SEC). He believes that the case for Ethereum ETFs is just as robust as it was for Bitcoin ETFs.
Engagement with SEC
Salm expressed confidence in the approval of Ethereum spot ETFs despite ongoing negative speculations in the crypto community. He aims to shed light on how the SEC interacts with applicants, drawing comparisons to the engagement before Bitcoin ETFs were approved.
- Salm highlighted thoughtful discussions on creation/redemption processes, custodianship, and other specifics.
- He emphasized the similarities between the approval process for Ethereum and Bitcoin ETFs.
- Issuers currently have less interaction with the SEC as compared to previous engagements.
Solidarity with Crypto Leaders
Salm emphasized his alignment with industry figures like Coinbase Chief Legal Officer, Paul Grewal, and Brian Quintenz on the importance of approving Ethereum spot ETFs. Grewal had previously contested the SEC’s classification of Ethereum as a security.
Correlation Between Futures and Spot
Salm believes that Ethereum ETFs should be treated as commodity futures and align with ETH futures ETFs due to the strong correlation between futures and spot prices. He reiterated Grayscale’s support for Ethereum spot ETF approval.
- Investors deserve exposure to Ethereum through ETFs.
- Approval odds for Ethereum exchange products have declined over time, currently standing at around 27%.
Anticipated Approval
Grayscale anticipates engaging with the SEC to discuss the significance of Ethereum spot ETFs. Despite uncertainties around approval timelines, Salm remains optimistic about the approval of Ethereum spot ETFs.
Hot Take: Ethereum Spot ETFs Are Promising
Amid uncertainties, Craig Salm’s optimism towards the approval of Ethereum spot ETFs underscores the strong case for Ethereum ETFs. Grayscale’s alignment with key industry figures and its belief in the correlation between futures and spot prices further solidifies the potential approval of Ethereum ETFs.
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