Grayscale CLO is Confident in Spot Ethereum ETF Approval


Grayscale Investments, a leading digital asset management firm, believes that spot Ethereum ETF will secure approval in May, despite recent speculation surrounding the US Securities and Exchange Commission’s (SEC) low engagement with applicants. According to a post on X, Grayscale, through its CLO Craig Salm, with his deep understanding of the regulatory landscape, maintains an optimistic outlook on the approval of spot Ethereum ETFs.

Grayscale Shows Continuous Optimism

In the post, Salm explained that the issues the SEC figured out are the same as the ones for spot Bitcoin ETFs. This means the SEC has already engaged with the issuers, as such, the perceived lack of engagement from the regulator is not indicative of any outcome. 

The prospect of spot Ethereum ETFs holds significant promise for both institutional and retail investors alike. Such ETFs would provide a regulated and accessible avenue for investors to gain exposure to ETH, without the complexities associated with direct ownership or trading on cryptocurrency exchanges. Additionally, the approval of spot ETH ETFs could signal a crucial milestone in mainstream acceptance of Ethereum and further legitimization of the broader cryptocurrency market.

SEC Delays Decision on Spot Ethereum ETF

Recall that a few days ago, reports revealed that the SEC had delayed its decision on the spot Ethereum ETF application filed by asset management firm VanEck. The regulator mentioned that it needed additional time to evaluate the proposed rule change, highlighting the complexity of the matter. 

Meanwhile, the postponement comes in the wake of similar delays in reviewing ETF applications for spot ETH from other entities such as Hashdex and ARK 21Shares. Bloomberg ETF analyst James Seyffart speculated that these delays may culminate in denials for Ether ETF applications, with deadlines set for May 2024.

However, Grayscale and Coinbase are currently engaged in discussions with the SEC for the approval of a spot ETH ETF in the United States. 

SEC Greenlights ETH Futures Applications

Despite the delay in Spot ETH ETF approvals, the SEC began greenlighting investment vehicles tied to Ether Futures last year, indicating a growing acceptance of Ether as a commodity. The delay in VanEck’s application has also prompted the regulator to open the proposal to public comment, allowing stakeholders to weigh in on the matter.

As the crypto market continues to evolve, the launch of an Ether spot ETF could further diversify investors’ portfolios and contribute to the adoption of cryptocurrencies in traditional financial markets.

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