Asset control company Grayscale Investments has up to date its software 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 contemporary put up on X through Craig Salm, Grayscale’s leader criminal officer, the asset control company has revised its 19b-4 form for an Ether spot ETF. Salm claimed that this transfer was once “important” in an effort for Grayscale to record and industry stocks of its Ether Trust at the New York Stock Exchange (NYSE) Arca.

The leader criminal officer stated in his post that traders “want and deserve access” to Ethereum by means of a place exchange-traded product, likening the location to the Bitcoin ETF tale. “We believe the case is just as strong as it was for spot Bitcoin ETFs,” Salm stated.

The asset supervisor is among the a large number of companies looking to issue the first Ethereum spot ETF within the United States, having filed an software with the SEC on October 10, 2023. However, those ETF programs have confronted delays a couple of instances, with the newest coming towards BlackRock’s submitting on March 4, 2024.

As a consequence, the likelihood of the SEC approving an Ethereum spot ETF has taken a nosedive in contemporary weeks. Once-optimistic Bloomberg ETF knowledgeable Balchunas even printed in his newest research that the ETH capital now have just a 35% probability of approval.

Two US senators of the Democrat birthday party, Sens. Laphonza Butler of California and Jack Reed of Rhode Island, have steered the SEC chairman to steer clear of approving crypto funding merchandise. In a letter dated March 11, the lawmakers, who’re additionally contributors of the Senate Banking Committee, requested the Commission to restrict long run crypto ETF programs.

The luck of the BTC spot merchandise obviously ruffling some feathers at the Hill. @SenatorJackReed and @Senlaphonza write to the @SECGov urging:
-no additional ETPs for different tokens
-make existence tough (i.e. examinations/evaluations) for agents and advisers that counsel BTC ETPs pic.twitter.com/enxdumC02N

— Alexander Grieve (@AlexanderGrieve) March 14, 2024

Following the approval of eleven Bitcoin spot ETFs in January, the eye of the crypto public has slightly became as to whether the SEC will do the similar for the Ethereum variations. However, this newest letter from the senate turns out to additional hurt the chances of an ETH ETF approval.

Part of the letter learn:

Retail traders would face monumental dangers from ETPs referencing thinly traded cryptocurrencies or cryptocurrencies whose costs are particularly prone to pump-and-dump or different fraudulent schemes,” they stated. “The Commission is underneath no legal responsibility to approve such merchandise, and given the chance, it must now not achieve this.

As of this writing, the worth of the Ethereum token stands at $3,731, reflecting a 1.2% building up prior to now day.

Ethereum worth on a deep correction at the day by day time frame | Source: ETHUSDT chart on TradingView

Featured symbol from The Economic Times, chart from TradingView

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