- Grayscale’s CLO reiterated the SEC’s robust case for Ether ETF approval.
- Commodity futures additionally urged potential for spot Ether ETF approval.
2024 has been a big yr for the cryptocurrency market, marked by robust restoration in costs and investor confidence.
With the success of Bitcoin [BTC] ETFs, consideration has turned to the potential of an Ethereum [ETH] ETF.
Nonetheless, whereas optimism surrounding an Ethereum ETF approval is excessive, a number of components urged that warning could also be warranted.
Craig Salm, Grayscale’s chief authorized officer, has supplied readability, asserting SEC’s robust case for approval. He famous,
“Maybe I’ll really feel in a different way as we get nearer to remaining approve/deny dates in late Might 2024, however at this level, I don’t assume perceived lack of engagement from regulators ought to be indicative of 1 final result or one other.”
The rising hypothesis
Salm additional outlined that points associated to identify Ethereum ETFs have been largely addressed earlier than spot Bitcoin ETFs have been accredited. He emphasized,
“All of those points have been found out and are similar when evaluating spot #Bitcoin to #Ethereum ETFs. The one distinction is relatively than the ETF holding bitcoin, it holds ether.”
He additional added,
“So in some ways, the SEC already has engaged and issuers merely have much less to interact on this time.”
Nonetheless, integrating staking into spot Ether ETFs might pose further challenges for candidates like Ark 21Shares, Constancy, and Franklin Templeton.
Opposite to the optimism, Bloomberg analyst Eric Balchunas commented,
“We’re holding the road at 25% odds altho tbh it’s a very pessimistic 25%. The dearth of engagement appears to be purposeful vs procrastination.”
He additional famous,
“No constructive indicators/intel wherever you look. Personally hope they do approve it nevertheless it simply ain’t wanting good.”
What lies forward of Ether ETFs?
Salm additionally urged that the latest approval of Ether Futures ETFs, categorised as commodity futures, might pave the best way for spot Ether ETFs.
This sentiment was echoed by different business consultants, together with Coinbase’s Paul Grewal and former CFTC commissioner Brian Quintenz.
Thus, with a variety of outstanding candidates equivalent to BlackRock, VanEck, and Constancy, awaiting SEC approval for spot Ether ETFs, the choice deadline for VanEck’s software is eagerly anticipated.