Craig Salm, the Chief Legal Officer (CLO) of Grayscale, is optimistic that the Securities and Exchange Commission (SEC) will approve spot Ether (ETH) exchange-traded funds (ETFs) by May 2024. Salm’s positivity is rooted in the SEC’s previous meetings with Grayscale before approving Bitcoin ETFs. These meetings covered crucial operational aspects such as creation and redemption procedures, cash versus in-kind contributions, authorized participants (APs), liquidity providers (LPs), and custody issues.

Based on these interactions, Salm argues that the case for Ethereum ETFs is very similar to that of Bitcoin ETFs. His main point is that many of the issues resolved for Bitcoin ETFs are directly applicable to Ethereum ETFs, as the primary difference lies in the underlying assets.

“In many ways, the SEC has already engaged, and issuers simply have less to engage on this time,” Salm stated.

Salm also points out the recent approval of Ether Futures ETFs, which were classified as commodity futures. According to him, this further supports the argument for a positive regulatory outcome, as the high correlation between futures and spot products strengthens the case for approving the latter.

Salm highlights that other industry insiders, like Paul Grewal, have echoed these sentiments. Grewal, the Chief Legal Officer for Coinbase, believes there is “no good reason” for the SEC to deny ETH ETP applications. He refers to statements from several SEC officials who have claimed that ETH is not a security measure.

However, not all industry observers share Salm’s optimism. Bloomberg ETF analysts Eric Balchunas and James Seyffart have expressed concerns over the SEC’s “lack of engagement,” reducing their expectations for an approved spot Ether ETF in May to a pessimistic 25%. Balchunas perceives this stance as intentional rather than mere procrastination.

Currently, the SEC has received filings from various companies, including BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, Franklin Templeton, and Hashdex. The deadline for VanECK’s application is set for May 23.