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Craig Salm, chief legal officer at Grayscale, suggested that the US SEC's “perceived lack of commitment” to ethereum exchange-traded fund (ETF) applicants would not be a deal-breaker hampering the prospects for such products. .
On March 25 mail On X (formerly Twitter), Salm said that ethereum ETFs would be approved because “the SEC already has committed” to issuers during the application process for a spot bitcoin ETF.
Why the SEC Might Approve ethereum ETFs
According to him, during the approval of bitcoin spot ETFs, the financial regulator resolved key issues, including creation and redemption processes, cash transactions versus in-kind transactions, and custody issues. He noted that these solutions apply to ethereum due to its similarities to bitcoin.
He commented:
“All of these issues have been resolved and are identical when comparing bitcoin Spot ETFs to ethereum ETFs. The only difference is that instead of the ETF containing bitcoins, it contains ether. So in many ways, the SEC has already engaged and issuers simply have less to engage with this time.”
Additionally, Salm reiterated arguments made by Paul Grewal, Coinbase's chief legal officer, regarding the need for the financial regulator to approve an eth spot ETF. Salm highlighted the consistent and strong correlation between eth futures and spot prices, reinforcing the rationale for the approval.
He added:
“Investors want and deserve access to ethereum in the form of an ethereum spot ETF and Grayscale believes the case is as strong as it was for bitcoin spot ETFs.”
Hopes Dim for ethereum ETF
In recent weeks, there has been growing skepticism about the possibility of regulatory approval for ethereum ETFs.
The financial regulator has postponed the approval process for several issuers, causing skepticism among market analysts. These delays, along with minimal regulatory activity around applications, have dampened community optimism about the prospects of an ethereum ETF.
Additionally, reports suggest that the SEC is investigating the regulatory classification of ethereum as a security or commodity. This fact adds further uncertainty to the approval prospects.
The post Grayscale Executive Sees Path to ethereum ETF Approval Despite SEC Silence appeared first on CryptoSlate.
