Spot Ethereum ETF Is Now In Active Discussions With The SEC By Coinbase And Grayscale

Key Points:

• Coinbase and Grayscale Ethereum Trust met with the SEC to discuss a spot Ethereum ETF.
• Representatives from both firms, attorneys from Davis Polk, and members of the SEC attended the meeting.
• While details of the discussion remain undisclosed, Coinbase’s presentation suggested that an Ethereum ETF would be categorized similarly to Bitcoin ETFs.

On March 6, 2024, representatives from Coinbase and Grayscale Ethereum Trust engaged in discussions with the US Securities and Exchange Commission (SEC) regarding the proposed Ethereum Exchange-Traded Fund (ETF).

SEC Meeting: Coinbase and Grayscale Discuss Spot Ethereum ETF

The meeting, convened by the SEC’s Trading and Markets Division, marked a pivotal moment in the ongoing dialogue between regulatory authorities and key players in the cryptocurrency sphere.

According to documents from the SEC, attorneys from Davis Polk, representing Grayscale, were also present alongside various members of the SEC’s Division of Trading and Markets. During the meeting, Coinbase delivered a presentation, although specific details of the discussion remain undisclosed.

Notably, Coinbase’s presentation outlined that shares of a potential spot Ethereum ETF would be classified as commodity-based, akin to existing Bitcoin ETFs. This categorization aligns with efforts to establish regulatory clarity and a framework within the crypto investment landscape.

Coinbase’s Proposal: Spot Ethereum ETF Model Mirrors Bitcoin’s

While the meeting signifies progress in the pursuit of a spot Ethereum ETF, industry analysts offer differing perspectives on its implications. Eric Balchunas, a senior ETF analyst, expressed concerns over the absence of direct comments from the SEC to ETF companies, particularly concerning timing relative to past engagements on Bitcoin ETFs.

However, Nate Geraci, another ETF analyst, highlighted the focus on analyzing the correlation between Ethereum futures and spot markets, emphasizing Coinbase’s analysis suggesting a strong correlation similar to Bitcoin markets.

The meeting underscores Grayscale and Coinbase’s commitment to navigating regulatory challenges and expanding the accessibility of crypto investment products. It follows the SEC’s recent approval of numerous spot Bitcoin ETFs, which significantly influenced Bitcoin prices and heightened investor interest in crypto investment opportunities.