Asset management company Grayscale Investments has updated its application for an ethereum spot ETF (exchange-traded fund) with the United States Securities and Exchange Commission (SEC).
ethereum Spot ETF Case Is as Strong as bitcoin, Grayscale Argues
According to a recent post on X by Craig Salm, Grayscale's chief legal officer, the asset management firm has reviewed your form 19b-4 for an Ether spot ETF. Salm stated that this move was “important” in an effort by Grayscale to list and trade shares of its Ether Trust on the New York Stock Exchange (NYSE) Arca.
The legal director he stated in his post that investors “want and deserve access” to ethereum through a spot exchange-traded product, comparing the situation to the history of the bitcoin ETF. “We think the case is as strong as it was for spot bitcoin ETFs,” Salm said.
The asset manager is among the numerous companies ethereum-etf-sell-the-news-event/” target=”_blank” rel=”nofollow”>looking to issue first ethereum spot ETF in the United States, after having filed an application with the SEC on October 10, 2023. However, these ETF applications have faced delays several times, with the most recent coming against BlackRock's filing on March 4, 2023. 2024.
As a result, ethereum-etfs-approval-odds-drop-to-35/” target=”_blank” rel=”nofollow”>probability The SEC's decision to approve an ethereum spot ETF has taken a nosedive in recent weeks. Bloomberg's once bullish ETF expert Balchunas even revealed in his latest analysis that eth funds now have just a 35% chance of approval.
Two US senators from the Democratic Party, Senators Laphonza Butler of California and Jack Reed of Rhode Island, urged the SEC chairman to prevent the approval of cryptocurrency investment products. In a letter dated March 11, the lawmakers, who are also members of the Senate Banking Committee, asked the Commission to limit future applications for crypto ETFs.
The success of btc spot products clearly ruffles some feathers on Hill. @SenatorJackReed and @senlaphonza write to @SECGov urging:
-no more ETP for other tokens
-make life difficult (i.e. exams/reviews) for brokers and advisors who recommend btc ETPs pic.twitter.com/enxdumC02N-Alexander Grieve (@AlexanderGrieve) March 14, 2024
Following the approval of 11 bitcoin spot ETFs in January, the crypto public's attention has been somewhat focused on whether the SEC will do the same for ethereum versions. However, this latest letter from the Senate seems to further reinforce ethereum-etfs-approval-outlook-fades-ahead-may-23/” target=”_blank” rel=”nofollow”>hurt the chances of approval of an eth ETF.
Part of the letter said:
“Retail investors would face enormous risks due to ETPs that reference thinly traded cryptocurrencies or cryptocurrencies whose prices are especially susceptible to pump and dump or other fraudulent schemes,” they said. “The Commission has no obligation to approve such products and, given the risk, should not do so.
At the time of writing, the ethereum token price stands at $3,731, reflecting a 1.2% increase over the past day.
ethereum price on a deep correction on the daily timeframe | Source: ETHUSDT chart on ethereum-etfs-approval-outlook-fades-ahead-may-23/" target="_blank" rel="nofollow">TradingView
Featured image from The Economic Times, chart from TradingView
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