Grayscale expresses confidence in the approval of spot Ether (ETH) exchange-traded funds (ETFs) in May, despite recent concerns about the U.S. Securities and Exchange Commission’s (SEC) engagement with applicants.
Grayscale’s Chief Legal Officer, Craig Salm, dismisses concerns about the perceived lack of engagement from regulators, stating that past issues related to spot Bitcoin ETFs have already been resolved. He believes that spot Ether ETFs have less to engage on this time.
While many issues have been resolved, ETF issuers incorporating staking into their spot Ether ETFs may face additional challenges that need to be addressed with the regulator.
Bloomberg ETF analysts Eric Balchunas and James Seyffart express concern over the lack of engagement from the SEC, reducing their odds for approved spot Ether ETFs in May to 25%. Balchunas describes this as a “pessimistic 25%” and suggests the lack of engagement appears to be purposeful.
Despite concerns, Salm points out that the recent approval of Ether Futures ETFs and their regulation as commodity futures positions spot Ether ETFs favorably for approval, as futures and spot products have a high correlation.
Analysts predict that all applicants, including prominent names like BlackRock, VanEck, and Fidelity, will learn the fate of their applications by May 23, the deadline for VanEck’s application decision.
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