Grayscale’s Chief Legal Officer Asserts the Inevitability of Ethereum ETF Approval
Grayscale’s Chief Legal Officer (CLO), Craig Salm, remains optimistic about the approval of spot Ethereum exchange-traded funds (ETFs). Despite ongoing discussions with regulators, Salm believes that the case for Ethereum ETFs is just as strong as it was for Bitcoin ETFs. He draws parallels with past engagements regarding Bitcoin ETFs, highlighting positive dialogues with the Securities and Exchange Commission (SEC).
Salm’s optimism stems from his belief that Ethereum ETFs should be given the green light by regulators. He dismisses concerns about the lack of SEC engagement, stating that it should be viewed differently at this point. To support his stance, he references productive discussions on topics such as ETF creation and redemption, asset storage, and the role of authorized participants and lenders.
Furthermore, Salm reveals that discussions about Ethereum ETFs involve operational and legal aspects similar to Bitcoin ETFs. He argues that the underlying principles governing ETF activity remain the same, regardless of the asset. With the basic framework and regulatory framework already in place, Salm contends that Ethereum ETFs should receive similar regulatory approvals as Bitcoin ETFs.
Looking ahead to the final decision, expected by the end of May 2024, Salm remains optimistic. He acknowledges the possibility of changing sentiments as the decision date approaches but emphasizes that the current lack of regulator involvement does not imply 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. They argue for the adoption of Ethereum ETFs, citing reasons such as compatibility with Ethereum futures ETFs, classification of Ethereum futures as commodity futures, and a high correlation between futures and spot prices.
Lastly, Salm emphasizes the importance of investors gaining access to Ethereum through spot ETFs, similar to Bitcoin ETFs. He expresses Grayscale’s commitment to engaging with regulators on this issue and highlights the company’s confidence in the strength of the case for the Ethereum ETF.