Grayscale Believes Ethereum ETFs Will Be Approved

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Despite recent concerns about the lack of engagement from regulators, Grayscale remains confident that spot Ether (ETH) exchange-traded funds will be approved in May.

According to Craig Salm, the company’s Chief Legal Officer, the perceived lack of engagement should not be seen as a sign of either approval or rejection.

He believes that the ETFs should be approved and is not deterred by the current state of engagement.

Salm also noted that many of the issues that were faced during the approval of spot Bitcoin ETFs have already been addressed, such as creation and redemption procedures, asset protection, and custody.

Thus, the SEC has already engaged with these issues, and the process for approving spot Ether ETFs should run more smoothly.

However, ETF issuers looking to incorporate staking into their spot Ether ETFs will need to address this issue with the regulator, including Ark 21Shares, Fidelity, and Franklin Templeton. This remains an area that needs to be resolved before spot Ether ETFs can be approved.