Grayscale has Outlined Potential Approval Timelines for an Ethereum ETF
Craig Salm, the head of Grayscale's legal department, expressed the belief that the U.S. Securities and Exchange Commission (SEC) is likely to approve an ETF based on the spot price of Ethereum by the summer of 2024. Bloomberg's market analyst James Seyffart, commenting on Blockworks, assessed a 60% chance of the instrument being accepted in May. He suggested that, otherwise, the consideration of applications might be delayed until 2025.
As @CraigSalm explained on @BizBriefing earlier this month, we believe that uplisting $ETHE to a spot Ethereum ETF is the natural next step in the product's evolution. This isn't our first rodeo. pic.twitter.com/SnyBjwhz8c
— Grayscale (@Grayscale) January 25, 2024
Seyffart stated, "If the SEC wants to prepare for a simultaneous launch [as in the case of the Bitcoin ETF], they will most likely approve the instrument on May 23, unless they find a way to reject or postpone the entire process."
On January 25, the SEC postponed the review of BlackRock's Ethereum ETF application until March 10. Gary Gensler, the SEC's chairman, reminded that approval for a spot exchange-traded fund based on Bitcoin was limited to just one cryptocurrency.
Mark Yusko, CEO of Morgan Creek Capital, assessed the likelihood of quick approval for an Ethereum ETF at less than 50%. He noted the SEC's general hostility toward the industry. JPMorgan analyst Nikolaos Panigirtzoglou shares a similar stance. TD Cowen investment bank specialists also expressed doubts about the imminent registration of spot Ethereum ETFs.