Craig Salm, the Chief Legal Officer at Grayscale, remains optimistic about the approval of spot Ethereum exchange-traded funds (ETFs) by the US SEC, despite the regulator's perceived lack of active engagement with applicants. In a post on X (formerly Twitter) on March 25, Salm expressed confidence that the past engagement between issuers and the SEC during the spot Bitcoin ETF approval process would lay a positive foundation for Ethereum ETFs.

Salm highlighted that many key issues regarding creation and redemption processes, transaction types, and custody concerns were resolved during the approval of spot Bitcoin ETFs. He emphasized that these solutions are directly applicable to Ethereum due to the similarities shared with Bitcoin.

According to Salm, the parallels between Bitcoin and Ethereum ETF processes are significant, with Ethereum potentially benefiting from the groundwork laid during Bitcoin ETF approvals. He echoed the sentiment expressed by Coinbase's chief legal officer, Paul Grewal, regarding the necessity for a spot ETH ETF, emphasizing the strong correlation between ETH futures and spot prices as a compelling case for approval.

However, there has been a growing sense of skepticism within the market concerning the likelihood of Ethereum ETF approvals in recent weeks. Delays in the approval process for various issuers, in conjunction with limited regulatory action, have clouded the optimism surrounding the potential launch of Ethereum ETFs.

Furthermore, reports indicate that the SEC is currently exploring the regulatory classification of Ethereum as either a security or a commodity. This ongoing investigation introduces additional uncertainty about the future approval prospects for an Ethereum ETF.