24/7 Cryptocurrency News

Grayscale CLO Explains Why Their Case of Spot Ethereum ETF Is Strong

Grayscale CLO stressed that spot Ethereum ETF concerns echo those of Bitcoin ETFs, thus requiring less discussion with the SEC.
Published by
Grayscale CLO Explains Why Their Case of Spot Ethereum ETF Is Strong

Highlights

  • Grayscale CLO thinks that SEC shouldn't take much time as spot Ether ETF is very similar to Bitcoin's ETF.
  • Grayscale seeks a constructive engagement with the US SEC on this matter.
  • ETH price has once again bounced back eyeing a move past $4,000.

Recently, there’s been a lot of discussion around how the U.S. Securities and Exchange Commission (SEC) is trying to downplay the approval for the spot Ethereum ETf while classifying Ethereum as a ‘security’. However, Grayscale’s chief legal officer Craig Slam has issued a clarification on this matter explaining how the company’s case for a spot Ethereum ETF approval is strong.

Grayscale CLO Roots for Spot Ethereum ETF

In a recent statement, Craig Salm, the Chief Legal Officer at Grayscale, addressed the ongoing discussions surrounding spot Ethereum ETFs. Salm expressed his belief that ETFs for Ethereum should indeed be approved, despite recent speculation. However, he primarily focused on clarifying the perception of the SEC’s engagement in the matter.

Salm highlighted the constructive engagement Grayscale and others experienced with the SEC in the months leading up to the approval of Bitcoin ETFs. During this period, detailed discussions covered various aspects such as creation/redemption procedures, custody, and the roles of authorized participants (APs) and liquidity providers (LPs).

He emphasized that the issues pertinent to spot Ethereum ETFs mirror those of spot Bitcoin ETFs, with the only distinction being the asset held i.e. Ether instead of Bitcoin. Therefore, Salm argued that the SEC has already engaged on these matters, suggesting less need for extensive discussions this time around.

While acknowledging that his perspective might evolve closer to the final approval or denial dates in late May 2024, Salm cautioned against interpreting the perceived lack of engagement from regulators as indicative of any specific outcome.

Moreover, Salm echoed sentiments expressed by other industry figures, including Paul Grewal and Brian Quintenz, regarding the reasons why spot Ethereum ETFs should be approved. These reasons include maintaining consistency with Ethereum futures ETFs, treating Ethereum futures as commodity futures rather than security futures, and the high correlation between futures and spot prices.

In conclusion, Salm affirmed Grayscale’s support for the approval of spot Ethereum ETFs, asserting that the case for them is as robust as it was for spot Bitcoin ETFs. Grayscale eagerly anticipates further engagement with the Commission on this matter.

Ethereum Price Moves Closer to $4,000

After heavy selling last week, the Ethereum price has once again bounced back from the lows of $3,000. As of press time, ETH is trading 4% up at a price of $3,671 with a market cap of $435 billion. The daily trading volume for Ethereum has also surged by a staggering 58% to $20 billion.

In the latest report, CoinGape explained several factors that could push the ETH price rally to its new all-time high of around $5,000.

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Ethena Labs Secures Fresh Funding From ArkStream Capital, ENA Price Spikes

Ethena Labs has secured fresh funding from ArkStream Capital as it expands its ecosystem in…

September 6, 2025
  • 24/7 Cryptocurrency News

SEC Forms International Task Force to Crack Down on Pump-and-Dump Schemes

The U.S. Securities and Exchange Commission has launched a task force designed to tackle cross-border…

September 6, 2025
  • 24/7 Cryptocurrency News

Justin Sun Pledges $20M Buy Following WLFI Wallet Freeze

Justin Sun Justin Justin Sun responded to World Liberty Financial freezing his wallet by promising…

September 6, 2025
  • 24/7 Cryptocurrency News

Expert Blames ‘Secret Committee’ for Rejecting MSTR Stock Inclusion to S&P 500

Michael Saylor's Strategy (NASDAQ: MSTR) missed the inclusion in the S&P 500 index on Friday,…

September 6, 2025
  • 24/7 Cryptocurrency News

MARA Bitcoin Treasury Nears $6 Billion, Trails Only Strategy in Public Rankings

MARA Holdings, Inc. announced that it now holds $5.9 billion worth of Bitcoin. This cements…

September 6, 2025
  • 24/7 Cryptocurrency News

Senate Banking Committee Releases Updated Draft Crypto Market Structure Bill

The U.S. Senate Banking Committee has released an updated version of the draft Crypto Market…

September 6, 2025