Asset management firm Grayscale Investments has updated its filing with the United States Securities and Exchange Commission (SEC) for an Ethereum spot ETF (exchange-traded fund).
The Ethereum spot ETF case is as solid as Bitcoin, argues Grayscale
According to a recent post on X by Grayscale Chief Legal Officer Craig Salm, the asset management firm has revised its Form 19b-4 for the Ether spot ETF. Salm claimed the move was “significant” in Greyscale’s bid to list and trade its Ether Trust shares on the New York Stock Exchange (NYSE) Arca.
The chief legal officer said in his post that investors “want and deserve” cashes in Ethereum through a spot exchange-traded product and compared the situation to the Bitcoin ETF story. “We believe the case is as strong as it was for spot bitcoin ETFs,” Salm said.
The asset manager is among numerous companies looking to issue the first Ethereum spot ETF in the United States, filing with the SEC on October 10, 2023. However, these ETF applications have faced delays several times, most recently against BlackRock on March 4, 2024.
As a result, the likelihood of the SEC approving an Ethereum spot ETF has diminished in recent weeks. The once-optimistic Bloomberg ETF expert Balchunas also revealed in his latest analysis that ETH funds now only have a 35% chance of approval.
Two US senators from the Democratic Party, Sens. Lafonza Butler of California and Jack Reid of Rhode Island, have urged the SEC chairman to avoid approving crypto investment products. In a letter dated March 11, the lawmakers, who are also members of the Senate Banking Committee, asked the commission to limit future crypto ETF applications.
The success of BTC spot products has clearly ruffled some feathers on the hill. @SenatorJackReed And @Senlaphonza write to @SECGov to urge:
-No more ETPs for other tokens
-Make life difficult for brokers and advisors recommending BTC ETPs (ie examination/review). pic.twitter.com/enxdumC02N— Alexander Grieve (@AlexanderGrieve) 14 March 2024
Following the approval of 11 bitcoin spot ETFs in January, crypto people’s attention has turned somewhat to whether the SEC will do the same for Ethereum versions. However, this latest letter from the Senate has further hurt the chances of ETH ETF approval.
Part of the letter read:
Retail investors will face greater risks from ETPs whose prices are particularly susceptible to pump-and-dump or other fraudulent schemes, referring to thinly traded cryptocurrencies or cryptocurrencies,” he said. “The Commission has no obligation to approve such products and, given the risks, should not do so.
As of this writing, the price of the Ethereum token is at $3,731, representing a 1.2% increase over the previous day.
Ethereum price on a deep correction on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from The Economic Times, chart from TradingView
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