According to Salm, the optimism arises from the SEC's prior meetings with Grayscale before approving Bitcoin ETFs. These discussions covered crucial operational aspects like creation/redemption procedures, cash versus in-kind contributions, authorized participants (APs), liquidity providers (LPs), and custody issues.

Drawing from these interactions, Salm contends that the case for Ethereum ETFs closely mirrors that of Bitcoin ETFs. He argues that many of the previously resolved issues for Bitcoin ETFs are directly applicable to Ethereum ETFs, as the primary difference between the two products lies in the underlying assets.

"In many respects, the SEC has already engaged, and issuers now have less to discuss this time," Salm stated.

Salm also referenced the recent approval of Ether Futures ETFs and their classification as commodity futures. According to the Grayscale CLO, this development further supports a favorable regulatory outcome.

He believes that the high correlation between futures and spot products strengthens the case for approving the latter.

Moreover, Salm highlighted that these sentiments have been echoed by other industry insiders, such as Paul Grewal. Coinbase's chief legal officer argued that there was "no good reason" for the SEC to deny ETH ETP applications, citing statements from several SEC officials affirming that ETH was not a security.

"We hope they won't attempt to create one by questioning the long-established regulatory status of ETH, which the SEC has repeatedly endorsed. That's not how the law works," Grewal wrote at the time.

However, not all industry observers share Salm's optimism.

Bloomberg ETF analysts Eric Balchunas and James Seyffart have expressed concerns about the SEC's "lack of engagement," lowering their expectations for an approved spot Ether ETF in May to a pessimistic 25%. Balchunas views this stance as deliberate rather than mere "procrastination."

As of now, the SEC has received filings from BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, Franklin Templeton, and Hashdex. VanECK's application deadline is set for May 23.