1 month ago
Craig Salm, the Chief Legal Officer astatine Grayscale, suggested that the US SEC’s “perceived deficiency of engagement” with spot Ethereum exchange-traded funds (ETFs) applicants wouldn’t beryllium a decisive origin that would hinder the prospects of specified products.
In a March 25 post connected X (formerly Twitter), Salm said the Ethereum ETFs would beryllium approved due to the fact that “the SEC already has engaged” with the issuers during the exertion process for a spot Bitcoin ETF.
Why the SEC could o.k. Ethereum ETFs
According to him, during the approval of spot Bitcoin ETFs, the fiscal regulator worked retired cardinal issues, including instauration and redemption processes, currency versus in-kind transactions, and custody concerns. He pointed retired that these solutions use to Ethereum owed to its similarities with Bitcoin.
He remarked:
“All of these issues were figured retired and are identical erstwhile comparing spot Bitcoin to Ethereum ETFs. The lone quality is alternatively than the ETF holding bitcoin, it holds ether. So successful galore ways, the SEC already has engaged and issuers simply person little to prosecute connected this time.”
Furthermore, Salm reiterated the arguments made by Paul Grewal, Coinbase’s main ineligible officer, regarding the fiscal regulator’s request to o.k. a spot ETH ETF. Salm highlighted the accordant and robust correlation betwixt ETH futures and spot prices, which reinforces the rationale for approval.
He added:
“Investors privation and merit entree to Ethereum successful the signifier of a spot Ethereum ETF and Grayscale believes the lawsuit is conscionable arsenic beardown arsenic it was for spot Bitcoin ETFs.”
Hopes dim for Ethereum ETF
In caller weeks, determination has been increasing skepticism regarding the anticipation of regulatory support for Ethereum ETFs.
The fiscal regulator has postponed the support process for respective issuers, prompting skepticism among marketplace analysts. These delays, coupled with the minimal regulatory activity surrounding the applications, person dampened assemblage optimism astir the prospects of an Ethereum ETF.
Moreover, reports suggest that the SEC is investigating Ethereum’s regulatory classification arsenic either a information oregon a commodity. This improvement adds further uncertainty to the support prospects.
The station Grayscale enforcement sees way to Ethereum ETF support contempt SEC silence appeared archetypal connected CryptoSlate.
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