Bloomberg Senior ETF Analyst Eric Balchunas was cautious concerning the probability of spot Ethereum ETF approval, estimating the probabilities at a pessimistic 25%.
“The dearth of engagement appears to be purposeful vs procrastination. No constructive indicators/intel anyplace you look,” Balchunas stated on X, stating the SEC’s obvious strategic non-engagement.
The talk extends past mere hypothesis, with business stakeholders providing insights into the SEC’s course of. Craig Salm, Grayscale’s Chief Authorized Officer, supplied a contrasting perspective on the identical social media platform. Salm suggested that the SEC’s silence may not inherently sign disapproval and famous that the groundwork laid in the course of the approval course of for a spot Bitcoin ETF might affect the present scenario.
“Within the closing months main as much as Bitcoin ETF approval, Grayscale and others obtained constructive and constructive engagement from the SEC,” Salm stated.
The Grayscale consultant emphasised that the core points addressed for Bitcoin ETFs, comparable to creation/redemption procedures and custody considerations, apply equally to Ether, suggesting a baseline of engagement has already been established.
Throughout discussions on the subject, there was an undercurrent of concern concerning the SEC’s stance on Ether classification. Studies point out the regulator has issued subpoenas to crypto corporations on interactions with the Ethereum Foundation, hinting at a potential intention to categorise Ether as a safety.
Alex Thorn, head of firmwide analysis at Galaxy Digital, views these developments as making the approval of spot Ether ETFs quickly “extraordinarily unlikely.”