Grayscale Anticipates Ethereum Spot ETFs by May

Ethereum spot ETFs are expected to receive approval in May, despite claims of “lack of engagement” from the SEC with applicants. This was stated by Grayscale’s Chief Legal Officer, Craig Salm.

1/ Recently, there’s been a lot of chatter about spot #Ethereum ETFs. I personally am not deterred by it and believe the ETFs should be approved. But right now I want to talk about how I think perceived “lack of SEC engagement” should be viewed at this point:

— Craig Salm (@CraigSalm) March 25, 2024

According to the expert, the “lack of contact with the SEC” should not necessarily be seen negatively. He explained that many details were already worked out in the months leading up to the approval of BTC-ETFs.

“We had extensive discussions. We discussed the nuances of creation/redemption procedures, cash and in-kind redemptions, custody, etc. All these issues were resolved and are identical when comparing BTC-ETFs with ETH-ETFs,” said Salm.

The expert added that the difference between the products lies in the underlying asset. In many respects, the SEC has already engaged with issuers, resulting in fewer questions now, he explained.

On March 22, the Commission postponed the deadline for reviewing Grayscale Investments’ application for an Ethereum Futures Trust ETF to May 30, 2024.

Chances Dwindle, But Persist

Bloomberg analyst Eric Balchunas stated that the chances of ETH-ETF approval stand at a “very pessimistic 25%.”

Re Eth ETF approval, we are holding the line at 25% odds altho tbh it is a very pessimistic 25%. The lack of engagement seems to be purposeful vs procrastination. No positive signs/intel anywhere you look. Personally hope they do approve it but it just ain’t looking good. https://t.co/nuBdCDE18L

— Eric Balchunas (@EricBalchunas) March 25, 2024

“The lack of engagement seems to be intentional rather than procrastination. No positive signs/intel anywhere you look. I hope they approve it, but it doesn’t look very good,” he commented.

Back in January, Salm was among those who predicted the product’s approval in the coming months.

In March, Bloomberg analysts reduced the likelihood of spot ETH-ETF approval by May 23 to 35%, citing the SEC’s low level of engagement in negotiations with issuers.