Grayscale Anticipates Approval for Spot Ethereum ETFs
Grayscale’s chief legal officer remains optimistic that the U.S. Securities and Exchange Commission (SEC) could give the green light for spot Ethereum (ETH) exchange-traded funds (ETFs).
Positive Outlook for Ethereum ETFs
- Craig Salm believes that Ethereum ETFs should be approved, despite negative sentiments surrounding them.
- The perceived lack of SEC engagement on spot ETH ETFs applications is not necessarily negative.
Comparing Bitcoin and Ethereum ETFs
- Prior to the approval of Bitcoin ETFs, Grayscale and others received constructive engagement from the SEC.
- Discussed creation/redemption procedures, cash vs. in-kind, APs, LPs, custody, among other details.
- Issues have been resolved and are similar when comparing spot Bitcoin and Ethereum ETFs.
Delays in SEC Decision
- In January, the SEC postponed its decision to approve spot Ethereum ETFs from BlackRock and Grayscale.
- The agency also delayed the approval for ETH ETF applications from financial giants Hashdex and Ark 21Shares.
- The new deadline for a decision was moved from March 31st to May 30th, extending by 60 days.
Regulatory Engagement and Outcome
- Salm remains optimistic about the approval despite the lack of engagement from regulators.
- He believes that the SEC has already engaged with issuers on key aspects of the proposed Ethereum ETFs.
- Perceived lack of engagement should not determine the final outcome of the approval process.
Closing Thoughts on Ethereum ETFs
Grayscale’s chief legal officer maintains a positive outlook on the approval of spot Ethereum ETFs, despite the perceived lack of engagement from the U.S. Securities and Exchange Commission. The comparison between Bitcoin and Ethereum ETFs, along with ongoing discussions with regulators, gives hope for a favorable outcome in the coming months.
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