Coinbase Urges SEC to Approve Grayscale Ethereum ETF: Report

• Coinbase urges the SEC to approve Grayscale’s Ethereum ETF utility.
• The platform offers Grayscale’s authorized, technical, and financial rationale to win approval.
• Paul Grewal asserts that Coinbase’s help for the ETF is principally pushed by Ethereum’s standing as a commodity.

In a novel improvement within the exchange-traded funds (ETFs) market, Coinbase has urged the Securities and Change Fee (SEC) to approve Grayscale’s Ethereum ETF. Coinbase’s Chief Authorized Officer Paul Grewal, in a latest X submit, shared insights on Grayscale’s authorized, technical, and financial rationale to win the approval.

In October 2023, Grayscale utilized to transform its $5 billion Ethereum Belief into spot Ethereum ETFs. The report was first unveiled by NYSE Arca, an alternate that’s anticipated to record the ETF. Whereas the asset supervisor awaits the SEC’s regulatory approval, CEO Michael Sonnenshein asserted that the agency intends to convey the event into the US regulatory perimeter.

Coinbase and Grewal’s help for the Grayscale Ethereum Belief was primarily pushed by the popularity of ETH as a commodity and never a safety. In a letter addressed to the SEC, Coinbase wrote,

ETH’s standing as a commodity and never a safety has been acknowledged in a wide range of circumstances, together with the CFTC’s regulation of ETH futures, public statements by Fee officers, and rulings by federal courts

In line with the letter written on February 21, Coinbase firmly believes within the technological and operational safety mechanisms embraced by Ethereum. Thus, the platform pushes the regulators to approve the Ethereum ETF, asserting that the product proves little vulnerability to fraud and manipulation.

Whereas the lately launched spot Bitcoin ETFs develop remarkably, with BlackRock’s IBIT main the march, the crypto group is anticipating the SEC’s approval of Ethereum ETFs. As well as, Coinbase identified that the regulator’s “choice in approving spot Bitcoin ETPs applies with equal – and in some methods higher – power for itemizing and buying and selling the Shares.”