Ethereum Spot ETF Mirrors Bitcoin’s Trailblazing Strength: Grayscale CLO

Amid the uncertainty surrounding the Ethereum spot exchange-traded fund (ETF), Grayscale Chief Legal Officer Craig Sahm said: expressed His insight on this subject mentions the similarities between Ethereum and Bitcoin spot ETFs.

Ethereum Spot ETF is as strong as Bitcoin Spot ETF

Craig Sahm seems optimistic about Ethereum Spot ETF approval from US Securities and Exchange Commission (SEC)He believes that “the case for this product is as strong as it is for a Bitcoin ETF.”

Grayscale’s CLO emphasized its unwavering confidence in the product’s approval despite continued negative speculation in the cryptocurrency industry. However, his primary goal is to clarify how his SEC involvement with applicants in this situation is perceived.

Mr. Salm mentioned the committee’s work and drew the community’s attention to the previous months. Bitcoin ETF It was approved, noting that the SEC engaged actively and constructively with Grayscale and several other issuers during this period.

Additionally, there was a thoughtful discussion on details such as the creation/redemption process, cash vs. in-kind, AP, LP, custody, etc. Salm drew similarities between Ethereum and Bitcoin ETFs, saying the processes are the same, hinting at the possibility of approval.

According to him, the only aspect that turns out to be different is the assets held by ETFs. Ethereum Instead of BTC. Therefore, there is essentially less need for issuers to be involved at this point, as regulatory watchdogs are already involved in a variety of ways.

For this reason, Salm remains optimistic despite the uncertainty surrounding the final approval date, arguing that the outcome should not be determined by what he sees as a lack of regulatory involvement.

Additionally, the CLO emphasized its complete agreement with crypto stakeholders such as Coinbase Chief Legal Officer Paul Grewal and Brian Quintenz on the need for approval of the Ethereum Spot ETF.

Notably, Paul Grawel previously challenged the SEC’s position, arguing that there was not enough evidence for the regulator to classify Ethereum as a security or a valid reason to reject ETH exchange-traded products. That’s true.

Strong correlation between futures and spot

While Mr. Salm echoes the views of the aforementioned individuals, Approval of ETH ETF Because they are considered commodity futures and should match the ETH futures ETF. This is due to his belief that there is a strong connection between futures and spots.

Finally, Salm argues that while investors want and deserve exposure to ETH through ETFs, the Spot Ethereum ETF reflects similar strength to the Spot Bitcoin ETF. Grayscale reiterated its support for the approval. In the meantime, the company plans to discuss these important products with distributors.

So far, the probability of approval for ETH exchange products has decreased significantly over time. data The odds are now down to around 27%, according to Polymarket research.

ETH trading at $3,655 on 1D chart | Source: ETHUSDT tradingview.com

Featured image from iStock, chart from Tradingview.com

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