Coinbase Pushes for SEC Approval of Grayscale Ethereum Trust Listing
Coinbase, led by its chief legal officer Paul Grewal, has advocated for the Securities and Exchange Commission to list the Grayscale Ethereum trust for trading.
Grewal disclosed on social media that Coinbase responded to the SEC’s request, providing the necessary legal, technical, and economic justifications for approval. Asserting that Ethereum (ETH) is not a security but a commodity, Coinbase emphasized the consistent treatment of ETH by regulatory bodies and the market. Analysts anticipate SEC approval for spot ether ETFs as early as May, following Grayscale and NYSE Arca’s application to convert the Grayscale Ethereum trust. Notably, several major firms, including BlackRock and Fidelity, seek to establish spot ether ETFs to leverage the underlying asset’s potential for generating additional yield through staking.
In its letter to the SEC, Coinbase argued that the approval of spot bitcoin ETFs sets a precedent applicable, if not more compelling, for spot ether ETFs. Highlighting ETH’s market resilience to fraud and manipulation, Coinbase emphasized its substantial trading volume and correlation across spot markets. The potential approval of spot ether ETFs stands to benefit Coinbase’s custodial business significantly, considering its involvement in multiple U.S. bitcoin ETFs and recognition as a staking institution for major ether staking ETFs globally, as noted by analysts from S&P Global Ratings.
Clever Robot News Desk 23rd February 2024
