Craig Salm, Chief Legal Officer at Grayscale, anticipates the approval of Spot Ether (ETH) exchange-traded funds (ETFs) in May. This is despite concerns that the SEC has not been in recent communication with the applicants. Salm contends that the lack of participation does not inevitably signify an unfavorable result.
Many frequent concerns linked to spot Ether ETFs were addressed throughout the approval process for spot Bitcoin ETFs, including asset protection, custody, and formation and redemption processes. Regulators, however, may present additional challenge for investors wishing to incorporate staking into their Ethereum ETFs.
The SEC’s lack of involvement worries Bloomberg ETF analyst Eric Balchunas, as it will cut the likelihood of a spot Ether ETF being approved in May to 25%. He described, “pessimistic 25%,” implying that the low participation rate might be deliberate.
Prominent entities competing for SEC approval of spot Ether ETFs include BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, Franklin Templeton, and Hashdex.
Salm thinks that the spot Ether ETFs are well-positioned for approval, nevertheless, given the recent approval of Ether Futures ETFs and the regulation of these products as commodity futures. He supported the idea of spot Ether ETFs by pointing out the strong correlation between futures and spot products.
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