Grayscale’s Chief Legal Officer Highlights the Strength of Their Argument for Approval of a Spot Ethereum ETF and Addresses Concerns About the SEC’s Position
Constructive Engagement with the SEC
grayscale We intend to engage in constructive dialogue with the US SEC to advocate for approval of a spot Ethereum ETF, similar to the Bitcoin ETF.
Grayscale’s Argument for Spot Ethereum ETF Approval
In response to recent discussions surrounding the approval of a spot Ethereum ETF, Grayscale’s Chief Legal Officer Craig Salm provided clarity on the matter. Salm highlighted the similarities between the spot Ethereum ETF and the spot Bitcoin ETF, emphasizing that the SEC was previously involved in these issues during the Bitcoin ETF approval process.
He argues that the regulatory discussions so far should streamline the approval process for spot Ethereum ETFs because the underlying concerns are similar.
Also Read: Ethereum ETF on the Horizon: A Closer Look at Potential Approval in May
Salm’s perspective and industry consensus
While Salm acknowledged that his views are likely to evolve as the final decision date of late May 2024 approaches, he cautioned against interpreting the SEC’s participation as indicating a predetermined outcome.
He advocates the approval of a spot Ethereum ETF to align with the Ethereum futures ETF and treat Ethereum futures as commodity futures rather than security futures, echoing a sentiment shared by industry figures. He also highlights the significant correlation between futures and spot prices as additional grounds for approval.
ETH Price Rebounds Amid Regulatory Talks
Despite recent regulatory discussions, the price of Ethereum has rebounded from previous lows and is now trading at $3,671, with a market capitalization of $435 billion and a notable increase in daily trading volume. CoinGape’s latest report outlines various factors contributing to a potential ETH price rise, expected to hit a new all-time high of around $5,000.
By fostering a constructive dialogue with the SEC and presenting a compelling case for an Ethereum spot ETF, Grayscale aims to navigate regulatory hurdles and contribute to the widespread adoption of Ethereum in traditional financial markets.