The Approval Of Grayscale Spot Ethereum ETF Is Now Being Heavily Promoted By Coinbase

Key Points:

• Coinbase urges SEC to list Grayscale spot Ethereum ETF, emphasizing ETH as a commodity, not a security.
• Grayscale and NYSE Arca propose converting Ethereum Trust into a spot ETF, backed by major financial players like BlackRock and Fidelity.

Coinbase has urged the Securities and Exchange Commission (SEC) to consider listing the Grayscale spot Ethereum ETF for trading, as confirmed by the company’s chief legal officer, Paul Grewal.

Coinbase Pushes for Grayscale Spot Ethereum ETF

In a statement shared on the social media platform X, Grewal announced that Coinbase had responded to the SEC’s request for comment, providing comprehensive legal, technical, and economic reasoning for approval.

“Our letter lays out what anyone knows who’s paid even the slightest bit of attention to the subject: ETH is not a security. In fact, before and after the Merge, the SEC, the CFTC, and the market have treated ETH not as a security but a commodity,” stated Grewal.

Coinbase emphasized Ethereum’s liquidity depth and robust trading volume, comparable to established assets like Bitcoin (BTC) and major stocks such as those in the S&P 500 index, to argue against its classification as a security.

Anticipation Builds for SEC Approval of Spot Ethereum ETF

The push for listing the Grayscale spot Ethereum ETF comes after Grayscale and NYSE Arca proposed converting it into a spot Ethereum Exchange-Traded Fund (ETF) in October 2023. Major financial players like BlackRock and Fidelity have also expressed interest in Ethereum-based products.

The approval of a spot Bitcoin ETF by U.S. officials has heightened anticipation for a similar move for Ethereum. Experts speculate that the SEC may greenlight an Ethereum spot ETF as early as May this year.

The conversion to spot Ether ETFs is expected to open new avenues for investors and benefit Coinbase’s customer services, enabling broader exposure to Ethereum without direct asset ownership.