Grayscale’s Chief Legal Officer emphasizes the strength of their case for a spot Ethereum ETF approval and addresses concerns regarding the SEC’s stance.
Constructive Engagement with SEC
Grayscale seeks to engage with the US SEC in a constructive dialogue to advocate for the approval of spot Ethereum ETFs, drawing parallels with Bitcoin ETFs.
Grayscale’s Argument for Spot Ethereum ETF Approval
In response to recent discussions surrounding the approval of spot Ethereum ETFs, Grayscale’s Chief Legal Officer, Craig Salm, has provided clarity on the matter. Salm underscores the similarities between spot Ethereum ETFs and spot Bitcoin ETFs, stressing that the SEC has previously engaged on these issues during the approval process for Bitcoin ETFs.
He asserts that the regulatory discussions conducted thus far should streamline the approval process for spot Ethereum ETFs, as the underlying concerns are analogous.
Also Read: Ethereum ETF on the Horizon: A Closer Look at Approval Chances for May
Salm’s Perspective and Industry Consensus
While acknowledging the potential evolution of his perspective closer to the final decision date in late May 2024, Salm cautions against interpreting the SEC’s engagement as indicative of a predetermined outcome.
He echoes sentiments shared by industry figures, advocating for the approval of spot Ethereum ETFs to align with Ethereum futures ETFs and treat Ethereum futures as commodity futures rather than security futures. Additionally, he highlights the significant correlation between futures and spot prices as further rationale for approval.
ETH Price Rebound Amid Regulatory Discussions
Despite recent regulatory discussions, Ethereum’s price has rebounded from previous lows, currently trading at $3,671 with a market cap of $435 billion and a notable increase in daily trading volume. CoinGape’s latest report outlines various factors contributing to a potential ETH price rally, with projections indicating a new all-time high of around $5,000.
By fostering a constructive dialogue with the SEC and presenting a compelling case for spot Ethereum ETFs, Grayscale aims to navigate regulatory hurdles and contribute to the broader adoption of Ethereum in traditional financial markets.