Grayscale Exec Bullish on Ethereum Spot ETFs, Compares to Bitcoin Approval

Grayscale's Chief Legal Officer, Craig Salm, expresses optimism about Ethereum spot ETFs' approval, believing their case is as strong as Bitcoin ETFs. He draws parallels between the processes for Ethereum and Bitcoin spot ETFs, stating that they are identical except for the underlying asset. Salm highlights the positive engagement between the SEC and issuers during the approval process for Bitcoin ETFs, suggesting a similar outcome for Ethereum ETFs. He emphasizes the correlation between futures and spot markets and believes investors deserve exposure to ETH through ETFs.

Grayscale Executive Expresses Optimism on Ethereum Spot ETFs, Draws Parallels to Bitcoin Spot ETF Approval

Washington, D.C. - Craig Salm, Chief Legal Officer (CLO) of Grayscale Investments, has shared his insights on the regulatory landscape surrounding Ethereum spot exchange-traded funds (ETFs), expressing confidence in their eventual approval. Salm drew parallels between Ethereum and Bitcoin spot ETFs, emphasizing the similarities in the approval process and market dynamics.

Salm expressed his belief that the case for Ethereum spot ETFs is "just as strong as it was for Bitcoin ETFs," which were approved by the U.S. Securities and Exchange Commission (SEC) in October 2021. He highlighted his confidence despite the ongoing uncertainty and negative speculations within the cryptocurrency industry.

SEC Engagement and Approval Process

Salm shed light on the SEC's engagement with applicants in the Ethereum spot ETF situation, noting that the agency has been engaged in a positive and constructive manner in the final months leading up to the approval of Bitcoin ETFs. He emphasized that thoughtful discussions took place regarding specific aspects of the creation/redemption processes, custody arrangements, and other operational details.

Drawing parallels between Ethereum and Bitcoin ETFs, Salm stated that the process is identical, suggesting a potential approval. The only difference, he отметил, is that the ETF would hold ETH instead of BTC. As a result, issuers have less to interact with the SEC at this time due to the regulatory body's extensive involvement in the Bitcoin ETF approval process.

Correlation Between Futures and Spot Markets

Salm expressed his support for the approval of ETH ETFs based on his belief that they should be considered commodity futures and consistent with ETH futures ETFs. He highlighted the strong connection between futures and spot markets, arguing that the existence of actively traded ETH futures ETFs provides a robust foundation for spot ETFs.

Investor Demand and Grayscale's Commitment

Salm asserted that investors want and deserve to be exposed to Ethereum through ETFs, emphasizing Grayscale's belief that the case for spot Ethereum ETFs reflects similar strength as spot Bitcoin ETFs. Grayscale remains committed to working with the SEC to advance the approval of these products.

Market Outlook and Approval Odds

Despite the optimism expressed by Salm, the approval odds for ETH exchange products have witnessed a significant decline in recent months. Data from Polymarket reveals that the odds are presently down to around 27%. This decline may reflect the broader market uncertainty and regulatory challenges faced by the cryptocurrency industry.

Conclusion

Grayscale's Chief Legal Officer, Craig Salm, expressed his optimism on the approval of Ethereum spot ETFs, drawing parallels to the successful launch of Bitcoin spot ETFs. He emphasized the SEC's positive engagement with applicants and highlighted the strong correlation between futures and spot markets. While approval odds have declined recently, Grayscale remains committed to working with the SEC to advance these products and provide investors with the opportunity to access Ethereum through ETFs.