Grayscale Submits Revised Application For Ethereum Spot ETF – What’s New?
March 16 2024 - 9:00AM
NEWSBTC
Asset management firm Grayscale Investments has updated its
application for an Ethereum spot ETF (exchange-traded fund) with
the United States Securities and Exchange Commission (SEC).
Ethereum Spot ETF Case Just As Solid As Bitcoin’s, Grayscale Argues
According to a recent post on X by Craig Salm, Grayscale’s chief
legal officer, the asset management firm has revised its 19b-4 form
for an Ether spot ETF. Salm claimed that this move was “important”
in an effort for Grayscale to list and trade shares of its Ether
Trust on the New York Stock Exchange (NYSE) Arca. The chief legal
officer stated in his post that investors “want and deserve access”
to Ethereum via a spot exchange-traded product, likening the
situation to the Bitcoin ETF story. “We believe the case is just as
strong as it was for spot Bitcoin ETFs,” Salm said. Related
Reading: Behind The Scenes Of Shiba Inu 12% Plunge: What On-Chain
Analysis Tells Us The asset manager is amongst the numerous firms
looking to issue the first Ethereum spot ETF in the United States,
having filed an application with the SEC on October 10, 2023.
However, these ETF applications have faced delays multiple times,
with the most recent coming against BlackRock’s filing on March 4,
2024. As a result, the likelihood of the SEC approving an Ethereum
spot ETF has taken a nosedive in recent weeks. Once-optimistic
Bloomberg ETF expert Balchunas even revealed in his latest analysis
that the ETH funds now have only a 35% chance of approval. SEC
Chairman Faces Pressure Over Crypto Approval Two US senators of the
Democrat party, Sens. Laphonza Butler of California and Jack Reed
of Rhode Island, have urged the SEC chairman to avoid approving
crypto investment products. In a letter dated March 11, the
lawmakers, who are also members of the Senate Banking Committee,
asked the Commission to limit future crypto ETF applications.
Following the approval of 11 Bitcoin spot ETFs in January, the
attention of the crypto public has somewhat turned to whether the
SEC will do the same for the Ethereum versions. However, this
latest letter from the senate seems to further hurt the chances of
an ETH ETF approval. Related Reading: Altcoins Fall: Will Ethereum
And Solana Bulls Surpass Expectations? A part of the letter read:
Retail investors would face enormous risks from ETPs referencing
thinly traded cryptocurrencies or cryptocurrencies whose prices are
especially susceptible to pump-and-dump or other fraudulent
schemes,” they said. “The Commission is under no obligation to
approve such products, and given the risk, it should not do so. As
of this writing, the price of the Ethereum token stands at $3,731,
reflecting a 1.2% increase in the past day. Ethereum price on a
deep correction on the daily timeframe | Source: ETHUSDT chart on
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