Grayscale’s chief legal officer (CLO), Craig Salm, anticipates that the SEC will approve spot Ether (ETH) exchange-traded funds (ETFs) by May 2024. This positive outlook is based on the SEC’s previous interactions with Grayscale before approving Bitcoin ETFs.

Salm highlights the critical operational aspects discussed during the meetings, such as creation/redemption procedures, cash versus in-kind contributions, authorized participants (APs), liquidity providers (LPs), and custody issues, which are relevant to Ethereum ETFs as well.

The recent approval of Ether Futures ETFs as commodity futures further supports the case for spot Ether ETFs. Salm emphasizes the high correlation between futures and spot products, strengthening the argument for approval.

Industry insiders like Paul Grewal have also expressed confidence in the approval of ETH ETP applications, citing previous statements from SEC officials endorsing ETH as not a security measure.

However, Bloomberg ETF analysts Eric Balchunas and James Seyffart have raised concerns about the SEC’s lack of engagement, lowering their expectations for an approved spot Ether ETF to 25% in May. Balchunas believes this stance is intentional rather than mere procrastination.

Various companies, including BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, Franklin Templeton, and Hashdex, have submitted filings to the SEC. The deadline for VanECK’s application is May 23.

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