Grayscale expresses confidence that spot Ether exchange-traded funds (ETFs) will be approved in May, despite concerns about the U.S. securities regulator’s lack of engagement with applicants. Craig Salm, Grayscale’s Chief Legal Officer, stated that he is not deterred by the perceived lack of engagement and believes that the ETFs should be approved. Salm explained that many of the issues associated with spot Bitcoin ETFs were resolved prior to their approval, and the same is expected for spot Ether ETFs. However, ETF issuers looking to incorporate staking into their spot Ether ETFs would need to address this issue with the regulator. Notable applicants for spot Ether ETFs include Ark 21Shares, Fidelity, and Franklin Templeton. Bloomberg ETF analysts have lowered the odds of an approved spot Ether ETF in May to 25% due to the perceived lack of engagement from the SEC. Despite this, Salm believes that the recent approval of Ether Futures ETFs and their regulation as commodity futures strengthens the case for spot Ether ETFs to be approved. Various companies, including BlackRock, VanEck, and Grayscale, are among the applicants seeking SEC approval for spot Ether ETFs. The SEC is expected to make a decision on VanEck’s application by May 23, and it is anticipated that all applicants will learn their fate on that date.
Grayscale offers hope for Ether ETF approvals despite SEC’s limited involvement