Representatives from the U.S. Securities and Exchange Commission (SEC) recently held discussions with Coinbase and Grayscale regarding the pending Spot Ethereum Exchange Traded Fund (ETF).
While Coinbase made a presentation to financial regulators about the Ethereum ETF, Grayscale focused on the potential listing of the Grayscale Ethereum Trust on NYSE Arca.
Coinbase, Grayscale discuss Ethereum ETF
According to Coinbase, potential Ethereum ETF stocks would qualify as commodity-based stocks, similar to Bitcoin ETFs.office emphasized The Commission’s reasoning behind approving Spot Bitcoin ETP also applies, if not more strongly, to Ethereum.
Additionally, Coinbase highlighted data showing the robustness of Ethereum futures and spot markets comparable to Bitcoin.
“As with Bitcoin, the exchange’s comprehensive oversight-sharing agreement with CME will help monitor fraud and manipulation,” Coinbase asserted.
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Less than two weeks later, Coinbase supported Grayscale’s move to convert the Ethereum Trust into an ETF, claiming that Ethereum is classified as a commodity. A legal representative for the exchange said the company has provided the SEC with the necessary legal, technical and economic justification to approve an Ethereum-based ETF.
Paul Grewal, Coinbase’s chief legal officer, said: “The economics are that Ethereum is as resilient as Bitcoin in meeting the European Commission’s standards for ETP (Exchange Traded Product) approval. is shown,” he said.
Meanwhile, the initiative has elicited differing opinions from the crypto community, which is speculating about the potential impact of these talks. ETF expert Nate Geraci highlighted a Coinbase analysis that showed the correlation between Ethereum futures and the spot market.Even so, Gerashi expressed Uncertainty as to “What is the basis for disapproval of the Spot Ether ETF?”
Meanwhile, Eric Balchunas, senior ETF analyst at Bloomberg, expressed concern about the SEC’s silence on pending applications, suggesting it could be a setback for applicants.
“It’s not like I’m going to lose the case in court. And the correlation between… [Ethereum] Futures and spot prices are not that strong [as that of Bitcoin]Balchunas Added.
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Nevertheless, Balciunas acknowledged that there is a glimmer of hope in BlackRock’s involvement. BlackRock, the world’s largest asset management company, played a central role in approving several Bitcoin Spot ETFs. This represents a positive precedent for pending applications.
Interestingly, cryptocurrency attorney Scott Johnson said, Said The meeting suggested that “the SEC is likely to approve/deny based on correlation.”
“Why bring in Coinbase to discuss the correlation analysis in front of the actual issuers? Think of it as highlighting what you want to do,” the lawyer concluded.
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