Grayscale’s CLO Asserts Inevitability of Ethereum ETF Approval

Grayscale’s Chief Legal Officer (CLO), Craig Salm, remains hopeful for the approval of spot Ethereum exchange-traded funds (ETFs). Despite ongoing regulatory discussions, Salm believes that the case for these ETFs is just as strong as it was for spot Bitcoin ETFs. He draws parallels with past Bitcoin ETF engagements, highlighting positive dialogues with the Securities and Exchange Commission (SEC).

Salm’s optimism is based on his belief that Ethereum ETFs should be given the green light by regulators soon. He dismisses concerns about a perceived lack of SEC engagement and emphasizes that discussions about Ethereum ETFs involve operational and legal aspects similar to Bitcoin ETFs. The underlying principles that govern ETF activity remain the same, regardless of the asset.

Salm expects a final decision on Ethereum ETFs by the end of May 2024 and remains optimistic about the outcome. He acknowledges the possibility of changing sentiments as the decision date approaches but emphasizes that the current lack of regulator involvement does not indicate a negative outcome. His views align with industry leaders such as Coinbase’s Chief Regulatory Officer, Paul Grewal, and former Commodity Futures Trading Commission (CFTC) Commissioner Brian Quintenz.

Grewal and Quintenz argue for the adoption of Ethereum ETFs, citing reasons such as compatibility with Ethereum futures ETFs, classification of Ethereum futures as commodity futures, and the high correlation between futures and spot prices. Salm emphasizes the importance of investors gaining access to Ethereum through spot ETFs, similar to Bitcoin ETFs. He expresses Grayscale’s commitment to engage with regulators on this issue and emphasizes the company’s confidence in the strength of the case for the Ethereum ETF.