Grayscale’s chief legal officer still believes the U.S. Securities and Exchange Commission (SEC) could greenlight spot Ethereum (ETH) exchange-traded funds (ETFs).

Craig Salm says the Ethereum ETFs “should be approved” and notes that he’s not deterred by the negative chatter surrounding the proposed financial products.

He also says the SEC’s perceived lack of engagement on the spot ETH ETF applications shouldn’t necessarily be viewed as negative.

“In the final months leading up to Bitcoin ETF approval, Grayscale and others received positive and constructive engagement from the SEC. We had thoughtful conversations and discussed the finer details of creation/redemption procedures, cash v. in-kind, APs, LPs, custody etc.

All of these issues were figured out and are identical when comparing spot Bitcoin to Ethereum ETFs. The only difference is rather than the ETF holding Bitcoin, it holds Ether. So in many ways, the SEC already has engaged and issuers simply have less to engage on this time.

Perhaps I will feel differently as we get closer to final approve/deny dates in late May 2024, but at this point, I don’t think perceived lack of engagement from regulators should be indicative of one outcome or another.”

In January, the SEC delayed its decision on whether or not to approve spot Ethereum ETFs from BlackRock and Grayscale, noting that it needed more time to consider the proposed rule change.

In a memo filed earlier this month, the regulatory agency also said it would be pushing back the date to approve ETH ETF applications by financial giants Hashdex and Ark 21Shares from March 31st to May 30th – a 60-day delay.

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