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Grayscale Pushes for Spot Ethereum ETF Amid SEC Delays
Grayscale Investments has resubmitted a filing to convert its Ethereum Trust into a spot ETF listed on NYSE Arca, reflecting the growing investor demand for a spot Ethereum ETF. The Securities and Exchange Commission (SEC) has been delaying decisions on approving spot Ethereum ETFs, adding to the uncertainty surrounding the approval process.
Investor Interest in Spot Ethereum ETF
Craig Salm, Grayscale Investments’ Chief Legal Officer, announced the submission of a revised Form 19b-4 for spot Ether exchange-traded funds, emphasizing the increasing investor interest in accessing Ethereum through a spot Ethereum ETF. Salm highlighted the importance of Ethereum ETFs, stating that investors are looking for and entitled to access Ethereum through a spot ETF.
Grayscale’s Strategic Moves
Grayscale’s move to uplist its Ethereum Trust to NYSE Arca is pivotal, as the company aims to meet the demand for a spot Ethereum ETF. The CEO, Michael Sonnenshein, has also committed to reducing fees for its flagship product, the Grayscale Bitcoin Trust ETF, following significant outflows.
Regulatory Hurdles and Opposition
The SEC’s postponement of its decision on Ethereum spot ETF applications from both Grayscale and BlackRock has created regulatory hurdles for these financial products. Additionally, American senators Jack Reed and Laphonza Butler have challenged the approval of spot Ethereum ETFs, urging the SEC not to approve them. They argue that, apart from Bitcoin, no other cryptocurrencies have the necessary trading volumes or integrity to back Exchange-Traded Products (ETPs).
Industry Outlook and Predictions
Despite the setbacks and opposition, some analysts maintain optimism, predicting that the SEC will approve Ethereum ETFs by May. However, there has been a lack of communication between issuers of Ethereum ETFs and the regulatory body, contributing to increased uncertainty and reducing the chances of approval, as per industry experts.
Final Thoughts and Predictions
Standard Chartered, a British multinational bank, has predicted that the SEC will continue to delay its decisions until eventually granting approval by May 23, the final deadline for the initial batch of ETF applications. The industry continues to watch closely as the regulatory landscape evolves, impacting the future of Ethereum ETFs and their potential influence on the value of the second-largest cryptocurrency.
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