According to Grayscale’s chief legal officer Craig Salm, “The argument is just as solid as it was for spot #Bitcoin ETFs.”
In spite of recent “chatter” about the U.S. securities regulator’s “lack of interaction” with applicants, Grayscale is hopeful that spot Ether (ETH) exchange-traded funds will be authorized in May.
The technicalities of the formation and redemption processes, cash and in-kind models, asset protection, loss prevention, custody, and other difficulties were “figured out” in the months leading up to the approval of spot Bitcoin ETFs, according to Salm.
“To a large extent, the SEC is already involved, and issuers are already facing less challenges,” he said, elaborating:
“But there’s another “hash out” with the regulator that ETF issuers seeking to include staking into spot Ether ETFs would have to deal with. A few of the candidates include Franklin Templeton, Ark 21Shares, and Fidelity.”
Bloomberg ETF analysts James Seyffart and Eric Balchunas recently voiced their displeasure with the SEC’s “lack of involvement” and lowered their May approval probability for spot Ether to 25%.
According to Balchunas’s March 25 article on X, the percentage is a “pessimistic 25%.” He went on to say that the lack of involvement is more likely “purposeful” than “procrastination.”
Because of the “great connection” between futures and spot products, Salm argued that the spot Ether ETFs would likely be allowed soon after the recent approval of Ether Futures ETFs and its regulation as commodities futures.
Last week, Coinbase’s top legal officer Paul Grewal and Commodity Futures Trading Commission commissioner Brian Quintenz came to a same decision.
A number of companies are seeking for the permission of the SEC to launch Ether ETFs. These include BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, Franklin Templeton, and Hashdex.
Analysts anticipate that all applicants will hear their fate on May 23, the day by which the SEC must rule on VanEck’s application.
