Craig Salm, the Chief Authorized Officer at Grayscale, instructed that the US SEC’s “perceived lack of engagement” with spot Ethereum exchange-traded funds (ETFs) candidates wouldn’t be a decisive issue that might hinder the prospects of such merchandise.
In a March 25 post on X (previously Twitter), Salm stated the Ethereum ETFs can be authorized as a result of “the SEC already has engaged” with the issuers throughout the software course of for a spot Bitcoin ETF.
Why the SEC might approve Ethereum ETFs
In accordance to him, throughout the approval of spot Bitcoin ETFs, the monetary regulator labored out key points, together with creation and redemption processes, money versus in-kind transactions, and custody considerations. He identified that these options apply to Ethereum due to its similarities with Bitcoin.
He remarked:
“All of these issues were figured out and are identical when comparing spot Bitcoin to Ethereum ETFs. The only difference is rather than the ETF holding bitcoin, it holds ether. So in many ways, the SEC already has engaged and issuers simply have less to engage on this time.”
Moreover, Salm reiterated the arguments made by Paul Grewal, Coinbase’s chief authorized officer, relating to the monetary regulator’s want to approve a spot ETH ETF. Salm highlighted the constant and sturdy correlation between ETH futures and spot costs, which reinforces the rationale for approval.
He added:
“Investors want and deserve access to Ethereum in the form of a spot Ethereum ETF and Grayscale believes the case is just as strong as it was for spot Bitcoin ETFs.”
Hopes dim for Ethereum ETF
In current weeks, there was rising skepticism relating to the potential for regulatory approval for Ethereum ETFs.
The monetary regulator has postponed the approval course of for a number of issuers, prompting skepticism amongst market analysts. These delays, coupled with the minimal regulatory exercise surrounding the functions, have dampened group optimism in regards to the prospects of an Ethereum ETF.
Furthermore, studies counsel that the SEC is investigating Ethereum’s regulatory classification as both a safety or a commodity. This growth provides additional uncertainty to the approval prospects.
The put up Grayscale executive sees path to Ethereum ETF approval despite SEC silence appeared first on CryptoSlate.
