Asset management firm Grayscale Investments has updated its Ethereum spot ETF (exchange-traded fund) application with the U.S. Securities and Exchange Commission (SEC).
Ethereum Spot ETF's case is just as strong as Bitcoin's, says Grayscale
According to a recent article on revised its form 19b-4 for a spot Ether ETF. Salm said the move was “important” in Grayscale's efforts to list and trade its Ether Trust shares on the New York Stock Exchange (NYSE) Arca.
The legal director said in his message that investors “want and deserve access” to Ethereum through a spot exchange-traded product, comparing the situation to the Bitcoin ETF story. “We think the case is just as strong as the case for spot Bitcoin ETFs,” Salm said.
The wealth manager is one of the many companies seeks to issue first Ethereum spot ETF in the United States, after filing with the SEC on October 10, 2023. However, these ETF applications have faced delays on several occasions, with the most recent coming against BlackRock's March 4, 2024 filing.
Therefore, the probability The SEC's decision approving an Ethereum spot ETF has nosedived in recent weeks. Balchunas, once an optimistic Bloomberg ETF expert, even revealed in his latest analysis that ETH funds now only have a 35% chance of being approved.
Two US senators from the Democratic Party, Senators Laphonza Butler of California and Jack Reed of Rhode Island, 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.
The success of spot BTC products has clearly ruffled some feathers on the Hill. @SenatorJackReed And @Senlaphonza write to @SECGov urging:
-no other ETPs for other tokens
-make life difficult (i.e. reviews/reviews) for brokers and advisors who recommend BTC ETPs pic.twitter.com/enxdumC02N– Alexandre Grieve (@AlexanderGrieve) March 14, 2024
Following the approval of 11 Bitcoin spot ETFs in January, the crypto public's attention has shifted somewhat to whether the SEC would do the same for Ethereum versions. However, this latest letter from the Senate seems to go further harm the chances of an ETH ETF being approved.
Part of the letter read:
Retail investors would face enormous risks from ETPs referencing thinly traded cryptocurrencies or cryptocurrencies whose prices are particularly susceptible to pumping and dumping or other fraudulent schemes,” they said. they declared. “The Commission has no obligation to approve such products and, given the risk, it should not do so.
At the time of writing, the price of the Ethereum token stands at $3,731, reflecting a 1.2% increase over the past day.
Ethereum price on a deep correction on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from The Economic Times, chart from TradingView
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