Grayscale, a prominent cryptocurrency asset management firm, remains optimistic about the approval of spot Ethereum (ETH) exchange-traded funds (ETFs) in May.
Grayscale, a prominent cryptocurrency asset management firm, remains optimistic about the approval of spot Ethereum (ETH) exchange-traded funds (ETFs) in May, despite recent concerns over the lack of engagement from the U.S. securities regulator.
Craig Salm, the Chief Legal Officer of Grayscale, expressed confidence in the approval of ETFs and dismissed the notion that the perceived lack of engagement from regulators should determine the outcome. Salm emphasized that many of the issues related to spot Ether ETFs had already been resolved before spot Bitcoin ETFs were approved. These issues included creation and redemption procedures, cash and in-kind models, asset protection, loss prevention, and custody.
According to Salm, the Securities and Exchange Commission (SEC) has already engaged with the issuers, and as a result, there is less to engage on this time. He further stated that the case for spot Ether ETFs is just as strong as it was for spot Bitcoin ETFs.
However, ETF applicants seeking to incorporate staking into their spot Ether ETFs may need to address an additional concern with the regulator. Companies such as Ark 21Shares, Fidelity, and Franklin Templeton have included staking in their applications and will need to resolve this matter.
Bloomberg ETF analysts Eric Balchunas and James Seyffart have expressed concerns about the lack of engagement from the SEC and have lowered their odds for the approval of spot Ether ETFs in May to 25%. Numerous companies, including BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, Franklin Templeton, and Hashdex, have applied for spot Ether ETFs and are awaiting SEC approval. The SEC is expected to make a final decision on VanEck's application by May 23, and all applicants are expected to receive a decision on that day.
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