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Grayscale Submits Revised Application For Ethereum Spot ETF Whats New?

Grayscale Submits Revised Application For Ethereum Spot ETF  Whats New?
© Copyright Image: 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 Bitcoins, Grayscale Argues

According to a recent post on X by Craig Salm, Grayscales 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.

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 BlackRocks 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.

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.

Read more: https://www.newsbtc.com/ethereum-news/grayscale-submits-revised-application-for-ethereum-spot-etf-whats-new/

Text source: NewsBTC

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
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