Grayscale remains confident that spot Ethereum exchange-traded funds (ETFs) will receive approval from U.S. regulators in May, despite recent speculations surrounding the Securities and Exchange Commissions (SEC) engagement with applicants.

Craig Salm, Chief Legal Officer at Grayscale, conveyed the firms optimism through a thread on X, addressing concerns surrounding the perceived lack of SEC engagement with Ethereum ETF applicants.

Caution Against Overinterpreting SEC Engagement

He highlighted the parallels between the approval process for spot Bitcoin ETFs and their Ethereum-related counterparties, noting that many of the critical issues had already been addressed during discussions with the SEC leading up to the approval of the BTC batch.

3/ All of these issues were figured out and are identical when comparing spot #Bitcoin to #Ethereum ETFs. The only difference is rather than the ETF holding bitcoin, it holds ether. So in many ways, the SEC already has engaged and issuers simply have less to engage on this time.

According to Salm, the similarities between Bitcoin and Ethereum ETFs streamline the engagement process with regulators. He pointed out that the fundamental aspects of ETF operations remain consistent, with the primary difference being the underlying asset Bitcoin versus Ethereum.

Addressing concerns about the perceived lack of regulatory engagement, Salm argued against interpreting it as indicative of the approval outcome. He stressed that opinions on SEC’s engagement should not influence expectations as the approval dates approach.

He also echoed the sentiments of industry figures like Paul Grewal and Brian Quintenz, emphasizing why spot Ethereum ETFs should be approved.

Coordinated Attack and Engagement Concerns

Grayscales confidence contrasts with the sentiments expressed by Bloomberg ETF analysts Eric Balchunas and James Seyffart, who have revised their odds for spot Ethereum approval in May to a pessimistic 25%. Balchunas expressed concern over the apparent lack of engagement from the SEC, characterizing it as purposeful rather than mere procrastination.

Meanwhile, the SECs recent initiation of a probe into the Ethereum Foundation has caused industry experts to fear this could be interpreted as a coordinated attack on Ethereum, potentially providing grounds for the agency to delay or deny spot ETH ETFs.

Coinbases chief legal officer, Paul Grewal, reacted to the news, stating, The SEC has no good reason to deny the ETH ETP applications.

Travis Kling, chief investment officer of Ikigai Asset Management, had a similar perspective, stating: This now very obviously feels like a coordinated attack on ETH.

BlackRock, VanEck, Fidelity, and Grayscale, among others, continue to press forward with their spot Ethereum ETF applications. The SEC must decide on VanEcks application by May 23, expecting all applicants to receive their fate on that date.