Grayscale Updates Ethereum ETF Application Amid SEC Delays

Grayscale Investments, a leading asset management firm, has recently updated its Ethereum spot ETF application with the U.S. Securities and Exchange Commission (SEC). This update aims to get its Ether Trust shares listed on the NYSE Arca, according to a statement by Craig Salm, Grayscale’s chief legal officer, on X (formerly Twitter).

Salm emphasized that there is a strong demand for Ethereum through a spot ETF, similar to the desire for a Bitcoin ETF. He argued, “The case for an Ethereum spot ETF stands as strong as that for Bitcoin.” Grayscale is one of several companies striving to launch the first Ethereum spot ETF in the U.S., having initially applied in October 2023.

Yet, the journey toward approval has seen setbacks, including recent delays affecting a submission by BlackRock.

Recent developments have diminished hopes for the SEC’s green light on an Ethereum spot ETF, with industry analyst Balchunas pointing out a mere 35% chance of approval.

Adding to the skepticism, two Democrat senators have pressed the SEC chairman to be cautious with crypto product approvals, citing significant risks to retail investors from potential market manipulations.

This pushback comes despite the SEC's approval of 11 Bitcoin spot ETFs earlier in January, shifting focus and anticipation towards Ethereum ETFs. However, the senators’ concerns over the risks of approving such products could further complicate Ethereum ETF prospects.

As of now, Ethereum’s price has risen by 1.2% in the last day, reaching $3,731, even amid the uncertain regulatory environment surrounding its ETF applications.