Asset management firm Grayscale Investments has updated its application for an Ethereum spot ETF (exchange-traded fund) with the US Securities and Exchange Commission (SEC).
Ethereum Spot ETF Case Just as Solid as Bitcoin’s, Claims Grayscale
According to a recent post on revised its 19b-4 form for an Ether spot ETF. Salm claimed this move was “important” in an effort for Grayscale to list and trade shares of its Ether Trust on the New York Stock Exchange (NYSE) Arca.
The chief legal officer mentioned in his message that investors “want and deserve access” to Ethereum via a spot exchange-traded product, comparing the situation to the Bitcoin ETF story. “We believe the case is just as strong as for spot Bitcoin ETFs,” said Salm.
The asset manager is one of many companies looking to issue the first Ethereum spot ETF in the United States, after filing with the SEC on October 10, 2023. However, these ETF filings have been delayed multiple times, with the most recent filing against BlackRock’s March 4, 2024 filing.
As a result, The probability of the SEC approving an Ethereum spot ETF has taken a nosedive in recent weeks. In fact, the ever-optimistic Bloomberg ETF expert Balchunas revealed in his latest analysis that ETH funds now only have a 35% chance of approval.
Two US Senators from the Democratic party, Sens. Laphonza Butler of California and Jack Reed of Rhode Island have urged the SEC chairman not to approve crypto investment products. In a March 11 letter, the lawmakers, who are also members of the Senate Banking Committee, asked the Commission to restrict future crypto ETF applications.
The success of the BTC spot products has clearly ruffled some feathers on the Hill. @SenatorJackReed And @Senlaphonza write to the @SECGov insist on:
-no further ETPs for other tokens
-making life difficult (i.e. surveys/reviews) for brokers and advisors who recommend BTC ETPs pic.twitter.com/enxdumC02N— Alexander Grieve (@AlexanderGrieve) March 14, 2024
After the approval of 11 Bitcoin spot ETFs in January, the crypto public’s attention has shifted somewhat to whether the SEC will do the same for the Ethereum versions. However, this latest letter from the Senate seems to go further hurt the chances of an ETH ETF approval.
Part of the letter read:
Retail investors would face enormous risks if ETPs reference thinly traded cryptocurrencies or cryptocurrencies whose prices are particularly susceptible to pump-and-dump or other fraudulent schemes,” they say. “The Commission has no obligation to approve such products, and given the risk it should not.
At the time of writing, the price of the Ethereum token is $3,731, reflecting a 1.2% increase in the past 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
Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.