Key Points
Coinbase has urged the U.S. Securities and Exchange Commission (SEC) to approve Grayscale’s application for an Ethereum (ETH) ETF.
Coinbase’s Stance
Paul Grewal, Coinbase’s chief lawyer, sees approval as necessary following the preliminary conversion of the ETH trust into an instrument.
The call for approval was shared with the SEC as part of the regulator’s comment process on the application.
Grewal stated that Coinbase provided the Commission with a “legal, technical and economic justification” for the launch of Grayscale’s Ethereum ETF.
He emphasized the strong governance of Ether’s Proof of Stake, citing its robust characteristics in ownership concentration, consensus, liquidity, and governance, which reduce fraud and manipulation risks.
Grewal also mentioned that Coinbase is dedicated to supporting innovation and establishing a transparent, secure, and inclusive financial ecosystem.
To achieve this, the company continually engages in dialogue and explores regulatory solutions in the cryptocurrency space.
On January 25, the SEC deferred its decision on Grayscale’s Ethereum ETF application until March 10.
SEC Chairman Gary Gensler reminded that the approval of a Bitcoin (BTC) spot ETF was confined to a single cryptocurrency.
This delay also impacted BlackRock’s similar proposal for a spot crypto ETF.
Craig Salm, Grayscale’s head of legal, anticipates that the SEC will likely approve an ETF based on the Ethereum spot price in the summer of 2024.
