coinpedia.org
-
Craig Salm, Grayscale's CLO, asserts strong optimism for the approval of spot Ethereum ETF.
-
Coinbase's Paul Grewal and ex-CFTC Commissioner Brian Quintenz align with Salm's stance on Ethereum ETFs.
-
Salm draws parallels with past Bitcoin ETF engagements, highlighting positive dialogues with the SEC.
Craig Salm, Chief Legal Officer (CLO) at Grayscale, expressed optimism stating that the “case is just as strong as it was for spot Bitcoin ETFs”, despite ongoing regulatory talks. Salm’s sentiments come amidst growing anticipation and debate surrounding the potential approval of spot Ethereum exchange-traded funds (ETFs).
Why Craig Salm is Hopeful
Craig Salm is optimistic that Ethereum exchange-traded funds (ETFs) will be approved, as he firmly believes that these ETFs should be given the green light by regulators soon.
1/ Recently, there’s been a lot of chatter about spot #Ethereum ETFs. I personally am not deterred by it and believe the ETFs should be approved. But right now I want to talk about how I think perceived “lack of SEC engagement” should be viewed at this point:
— Craig Salm (@CraigSalm) March 25, 2024
However, to back his belief, Salm draws on past experiences with Bitcoin ETFs. In that context, he highlights positive and productive discussions he and others had with the Securities and Exchange Commission (SEC).
Meanwhile, this discussion focused on important topics such as how to create and redeem ETFs, how to safely store assets, and the role of authorized participants (APs) and lenders for (LPs) control primarily.
Grounds of ETH ETF Approval
Additionally, in a tweet post, Craig 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. With most of the basic framework and regulatory framework in place, Salm argues that the Ethereum ETF deserves similar regulatory approvals to the Bitcoin ETF.
What to Expect Further
Looking ahead to the final decision, which is expected by the end of May 2024, Salm remains optimistic. While acknowledging the possibility of changing sentiments as the decision date approaches, he stresses that the current lack of regulator involvement doesn’t mean a negative outcome.
Moreover, Salm’s views align with industry leaders such as Coinbase Chief Regulatory Officer Paul Grewal and former Commodity Futures Trading Commission (CFTC) Commissioner Brian Quintenz.
Reminder:
— Brian Quintenz (@BrianQuintenz) March 20, 2024
1/ When the SEC allowed ETH Futures ETFs to trade on its regulated security exchanges, it explicitly acknowledged the status of the underlying, ETH, as being a non-security and outside of its jurisdiction.
They 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 high correlation between futures and spot prices.
Lastly, Salm highlights the importance of investors gaining access to Ethereum through spot ETFs, which are similar to Bitcoin ETFs. He expresses Greyscale’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.