Amid uncertainty surrounding ethereum spot exchange-traded funds (ETFs), Grayscale Chief Legal Officer (CLO) Craig Salm has voiced his thoughts on the topic, addressing the similarities between ethereum and bitcoin spot ETFs.
ethereum Spot ETFs Are Just as Strong as bitcoin Spot ETFs
Craig Salm Bullish on US Approval of ethereum Spot ETFs Securities and Exchange Commission (SEC)as he believes that “the case for the products is as strong as the bitcoin ETFs were.”
Grayscale's CLO underlined its unwavering confidence in the approval of the products, despite continued negative speculation within the crypto landscape. However, its primary purpose is to shed light on how the SEC's commitment to applicants in this situation is perceived.
Addressing the Commission's commitment, Salm drew the community's attention to the last months before bitcoin ETF were approved, noting that during this period, the SEC interacted with Grayscale and several other issuers in a positive and constructive manner.
Additionally, there were thoughtful discussions about the details of the creation/redemption processes, cash versus kind, AP, LP, escrow, and among others. Drawing a parallel between ethereum and bitcoin ETFs, Salm stated that the process is identical, suggesting possible approval.
According to him, the only aspect that is different is that the ETF maintains eth instead of btc. Therefore, issuers essentially have less to interact with right now because the regulatory watchdog has already intervened in numerous ways.
Salm is therefore optimistic despite the uncertainty surrounding the final approval dates, arguing that the results should not be determined by a perceived lack of regulatory commitment.
Additionally, the CLO highlighted its complete alignment with crypto figures such as Coinbase Chief Legal Officer Paul Grewal and Brian Quintenz's views on the need to approve ethereum spot ETFs.
It is worth noting that Paul Grawel previously challenged the SEC's stance, claiming that the regulatory agency lacked sufficient evidence to categorize ethereum as a legitimate security or reason to reject exchange-traded eth products.
Strong correlation between futures and spot
While resonating with the opinions of the aforementioned figures, Salm supports the approval of eth ETFs because they should be considered commodity futures and be consistent with eth futures ETFs. This is due to their belief that there is a strong connection between futures and spot.
Finally, Salm asserts that investors want and deserve exposure to eth through ETFs, while underscoring Grayscale's belief that the case for ethereum spot ETFs reflects similar strength to that of ethereum spot ETFs. bitcoin, reiterating the company's support for approval. In the meantime, the company plans to discuss these important products with the agency.
So far, the approval odds for eth exchange products have seen a substantial decline over time. ethereum-etf-approved-by-may-31?tid=1711444026959″ target=”_blank” rel=”noopener nofollow”>Data from Polymarket reveals that the odds have currently dropped to around 27%.
Featured image from iStock, chart from Tradingview.com
