The U.S. Securities and Exchange Commission (SEC) is likely to approve an ETF based on the spot price of Ethereum by the summer of 2024, according to Craig Salm, head of the legal department at Grayscale.
As @CraigSalm explained on @BizBriefing earlier this month, we believe that uplisting $ETHE to a spot Ethereum ETF is the natural next step in the product’s evolution. This isn’t our first rodeo. pic.twitter.com/SnyBjwhz8c
— Grayscale (@Grayscale) January 25, 2024
Bloomberg analyst James Seyffart commented to Blockworks, estimating a 60% chance of the instrument being approved in May. He suggested that otherwise, the review of applications would be postponed until 2025.
“If the SEC wants to prepare for launching all at once [as with the Bitcoin ETF], they will most likely approve the instrument on May 23, unless they find some way to reject or delay the entire process,” he stated.
On January 25, the SEC postponed the review of BlackRock’s Ethereum ETF application until March 10. SEC Chairman Gary Gensler reminded that the approval of a spot exchange-traded fund based on Bitcoin was limited to just one cryptocurrency.
CEO of Morgan Creek Capital, Mark Yusko, assessed the chances of an imminent approval of an Ethereum ETF as less than 50%. He noted the SEC’s overall hostility towards the industry.
A similar stance is held by JPMorgan analyst Nikolaos Panigirtzoglou. Analysts from investment bank TD Cowen also expressed doubts about the imminent registration of spot Ethereum ETFs.
Earlier, FOX Business predicted the instrument’s approval by the summer of 2024.