CryptoETHCoinbase Advocates SEC Approval for Grayscale's Ethereum Spot ETF

Coinbase Advocates SEC Approval for Grayscale’s Ethereum Spot ETF

In a proactive move, the Coinbase team has urged the U.S. Securities and Exchange Commission (SEC) to greenlight Grayscale’s application for a spot Ethereum (ETH) ETF. Paul Grewal, Coinbase‘s Chief Lawyer, emphasized the necessity of approving Grayscale’s application, particularly concerning the preliminary conversion of the ETH trust into a tradable instrument.

As part of the regulatory process, Coinbase engaged in a call with the SEC, presenting a comprehensive case for the approval of Grayscale’s Ethereum spot ETF. Grewal highlighted that the crypto exchange provided the Commission with a robust “legal, technical, and economic justification” in support of Grayscale’s initiative.

Expressing the commitment to fostering innovation and establishing a transparent, secure, and inclusive financial ecosystem, Grewal stated that Coinbase maintains an ongoing dialogue and conducts research to explore regulatory solutions within the cryptocurrency space.

The SEC, on January 25, deferred its decision on Grayscale’s Ethereum ETF application until March 10. Gary Gensler, Chairman of the Commission, cited limitations in approving spot ETFs based on only one cryptocurrency, referencing the approval of a Bitcoin (BTC) spot ETF. This delay also impacted BlackRock’s analogous bid for a spot crypto ETF.

Craig Salm, Grayscale’s Head of Legal, remains optimistic about the SEC greenlighting an ETF based on the Ethereum spot price, predicting potential approval in the summer of 2024. The push for approval from Coinbase underscores the industry’s eagerness to expand investment avenues and marks a strategic step towards broader adoption of cryptocurrency-based financial products.

Share This Post

Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

Related Posts

WonderFi CEO Freed After Ransom Payment Following Toronto Kidnapping

Dean Skurka, the CEO of WonderFi, a major publicly...

Coinbase Launches cbBTC on Solana, Aims to Boost Bitcoin DeFi Liquidity

Nearly two years after FTX's collapse left a significant...

Mark Uyeda Plans to End Biden Administration’s “War on Crypto” Under Trump

Mark Uyeda, a Republican SEC Commissioner, has expressed his...

Dogecoin Soars Following Trump’s Victory, Boosted by Musk’s Influence

As Donald Trump edges closer to reclaiming the White...

Jack Dorsey’s Block Scales Back TIDAL Investment, Shuts Down Bitcoin Arm

Block, the fintech company founded by Jack Dorsey, announced...

Record Bitcoin ETF Inflows Surge After Trump’s Support for Digital Assets

U.S. exchange-traded funds (ETFs) investing in Bitcoin (BTC-USD) saw...