TL;DR Breakdown
- Despite concerns about SEC communication, Grayscale’s Craig Salm remains confident in spot Ether ETF approval.
- Approval of Ether Futures ETFs and their regulation as commodity futures strengthen the case for spot Ether ETFs.
- Bloomberg’s Eric Balchunas expresses concern over SEC engagement, estimating a 25% chance of spot Ether ETF approval in May.
Despite worries about the SEC not communicating much with applicants recently, Grayscale’s Chief Legal Officer, Craig Salm, remains confident that spot Ether (ETH) exchange-traded funds (ETFs) will be approved in May. Salm thinks that people not being involved doesn’t mean things will turn out bad.
Spot Ether ETF Approval Prospects and Regulatory Challenges
During the approval process for spot Bitcoin ETFs, many common issues related to spot Ether ETFs were addressed, including creation and redemption procedures, asset protection, and custody. But those wanting to add staking to their Ethereum ETFs might have another issue to deal with from regulators.
Bloomberg ETF analyst Eric Balchunas is concerned about the SEC’s lack of engagement, which will reduce the odds of an approved spot Ether ETF in May to 25%. He described this as a “pessimistic 25%,” suggesting the lack of engagement may be intentional.
However, Salm believes the recent approval of Ether Futures ETFs and the regulation of these products as commodity futures put the spot Ether ETFs in a strong position for approval. He cited the high correlation between futures and spot products as supportive of the case for spot Ether ETFs.
Major players such as BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, Franklin Templeton, and Hashdex are among the spot Ether ETF applicants vying for SEC approval.
In conclusion, while there are concerns about the SEC’s lack of engagement and potential hurdles for Ethereum ETFs, Grayscale’s Craig Salm remains optimistic about spot Ether ETF approval in May.
The recent approval of Ether Futures ETFs and their regulation as commodity futures provide a strong precedent for spot Ether ETFs. With major players like BlackRock and Fidelity in the mix, the industry eagerly awaits the SEC’s decision, hoping for a breakthrough in ETF offerings for Ethereum.
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