Despite worries about the SEC not communicating much with applicants recently, Grayscale’s Chief Legal Officer, Craig Salm, remains confident that spot Ether (ETH) exchange-traded funds (ETFs) will be approved in May. Salm thinks that people not being involved doesn’t mean things will turn out bad.
During the approval process for spot Bitcoin ETFs, many common issues related to spot Ether ETFs were addressed, including creation and redemption procedures, asset protection, and custody. But those wanting to add staking to their Ethereum ETFs might have another issue to deal with from regulators.
Bloomberg ETF analyst Eric Balchunas is concerned about the SEC’s lack of engagement, which will reduce the odds of an approved spot Ether ETF in May to 25%. He described this as a “pessimistic 25%,” suggesting the lack of engagement may be intentional.
However, Salm believes the recent approval of Ether Futures ETFs and the regulation of these products as commodity futures put the spot Ether ETFs in a strong position for approval. He cited the high correlation between futures and spot products as supportive of the case for spot Ether ETFs.
Major players such as BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, Franklin Templeton, and Hashdex are among the spot Ether ETF applicants vying for SEC approval.
Also Read: Grayscale Submits Vital Update for Ethereum ETF Approval
