ETH $4K Target on Track as Grayscale Asserts Confidence in ETF Approval

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ETH $4K Target on Track as Grayscale Asserts Confidence in ETF Approval
  • Grayscale is confident regarding the SEC’s approval of its ETH spot ETF.
  • Grayscale’s lead counsel disclosed that the firm had covered essential engagements with the SEC. 
  • A market analyst asserted that Ethereum is on track to reach the $4,000 price mark.

The largest crypto asset manager, Grayscale, has voiced confidence regarding the U.S. regulator’s potential approval of its Ethereum exchange-traded fund (ETF) application. In a recent post on X, Grayscale expressed that it is confident in its approval, similar to how it felt when its Bitcoin spot ETF application was also under review. 

“We believe the case for spot Ethereum ETFs is just as strong as it was for spot Bitcoin ETFs,” the statement read.

Craig Salm, Grayscale’s Chief Legal Officer, further substantiated the confidence by pointing out recent discussions surrounding spot Ethereum ETFs. Specifically, he addressed concerns regarding the perceived “lack of SEC engagement” at this stage.

Salm disclosed that in the months before the Bitcoin ETF’s approval, Grayscale and other applicants had positive engagements with the SEC and constructive conversations with it. 

Together, they explored intricate aspects such as creation and redemption procedures, as well as cash versus in-kind transactions. Moreover, they ironed out details concerning Authorized Participants (APs), Liquidity Providers (LPs), custody arrangements, and other pertinent details.

Essentially, Salm emphasized that all the critical issues have already been addressed and are identical when comparing spot Bitcoin to Ethereum ETFs. The only distinction lies in the asset being held by the ETF, with Ethereum replacing Bitcoin. 

Consequently, Salm suggested that the SEC has already been engaged on many pertinent matters, implying that issuers have comparatively fewer aspects to engage with this time around.

Furthermore, he agrees that spot Ethereum ETFs are consistent with ETH futures ETFs and should, therefore, be approved.

Grayscale’s view comes amid ETH’s growth of over 5% in the last 24 hours and 13.44% over the past week, putting its price at $3,644. Considering ETH’s noteworthy recovery from the bottom of $3,030 last week, analysts like Captain Faibik have asserted that Ethereum is on track to a $4,000 price.

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