Grayscale’s CLO Affirms Inevitability of Ethereum ETF Approval
Craig Salm, the Chief Legal Officer (CLO) at Grayscale, is filled with optimism when it comes to the approval of spot Ethereum exchange-traded funds (ETFs). He firmly believes that these ETFs should be given the green light by regulators soon, and he draws parallels with past Bitcoin ETF engagements to support his stance.
Salm acknowledges the ongoing regulatory talks surrounding Ethereum ETFs but remains undeterred. He points out that the case for Ethereum ETFs is just as strong as it was for spot Bitcoin ETFs. In a tweet, he expresses his confidence and discusses how the perceived “lack of SEC engagement” should be viewed at this point.
To back his belief, Salm refers to positive discussions with the Securities and Exchange Commission (SEC) regarding Bitcoin ETFs. These discussions focused on important topics such as the creation and redemption of ETFs, secure asset storage, and the role of authorized participants and lenders.
Salm reveals that discussions about Ethereum ETFs involve operational and legal aspects similar to Bitcoin ETFs. He emphasizes that the underlying principles that govern ETF activity remain the same, regardless of the asset. Therefore, he argues that Ethereum ETFs deserve similar regulatory approvals to Bitcoin ETFs, as most of the basic framework and regulatory framework is already in place.
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 stresses that the current lack of regulator involvement doesn’t necessarily mean 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 rather than security futures, and the high correlation between futures and spot prices.
Salm concludes by highlighting 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 Ethereum ETFs.