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Bloomberg Senior ETF Analyst Eric Balchunas was cautious about the likelihood of timely approval of the ethereum ETF, estimating the chances at a pessimistic 25%.
“Lack of commitment appears to be intentional versus procrastination. There are no positive signs or information anywhere you look,” Balchunas said in X, pointing to the SEC's apparent lack of strategic commitment.
The debate goes beyond mere speculation, with industry stakeholders offering insight into the SEC process. Craig Salm, chief legal officer at Grayscale, offered a contrasting perspective on the same social media platform. Salm suggested that the SEC's silence might not inherently be a sign of disapproval and noted that the groundwork laid during the approval process for a bitcoin spot ETF could influence the current situation.
“In the last few months leading up to the approval of the bitcoin ETF, Grayscale and others received positive and constructive engagement from the SEC,” Salm said.
The Grayscale representative emphasized that the core issues addressed for bitcoin ETFs, such as creation/redemption procedures and custody concerns, apply equally to Ether, suggesting that a foundation of compromise has already been established.
During discussions on the topic, there was an underlying concern regarding the SEC's stance on Ether classification. Reports indicate that the regulator has issued subpoenas to crypto companies over interactions with the ethereum.foundation/” data-type=”link” data-id=”https://ethereum.foundation/” target=”_blank” rel=”noopener”>ethereum Foundationhinting at a possible intention to classify Ether as a security.
Alex Thorn, head of enterprise-wide research at Galaxy Digital, believes these developments make the approval of Ether spot ETFs soon “extremely unlikely.”
