While it was stated that Grayscale's victory against the SEC was effective in SEC approval regarding spot Bitcoin ETFs, Grayscale also made an application to convert its existing Ethereum Trust product into a spot Ethereum ETF.
At this point, Grayscale has received the support of Coinbase, the leading cryptocurrency exchange in the USA, regarding Ethereum ETFs.
In a letter, crypto exchange Coinbase stated that it supports Grayscale's application to convert its existing Ethereum Trust product (ETHE) into a spot Ethereum ETF and called on the SEC to approve this application.
Paul Grewal, Coinbase's chief legal officer, said in his post from his X account that Coinbase responded to the SEC's request for comment on the Grayscale Ether Trust (ETHE) ETP, stating that Coinbase supports Grayscale's spot ETH ETF application.
Stating that Coinbase thinks that Ethereum should be classified as a commodity, not a security, Grewal argued that this situation is supported by the CFTC's approval of Ethereum futures, court decisions and statements of SEC officials.
Today, Coinbase responded to the SEC's request for comment regarding the Grayscale Ether Trust (ETHE) ETP.
First of all, as Coinbase, we support Grayscale's Etheruem ETF application and think it should be approved.
At this point ETH is not a security and is a commodity. In fact, before and after the Merger, the SEC, CFTC, and the market treated ETH as a commodity, not a security.
At this point, everyone has long understood that ETH is not a security. SEC senior officials have publicly acknowledged this on numerous occasions over the past six years, and neither the SEC nor its staff have denied it, even after the merger.”
Finally, stating that the economy is the same as ETH in meeting the ETF approval standard, Coinbase said that Ethereum is as durable as BTC.
As you may remember, on January 25, the SEC postponed its evaluation of Grayscale's Ethereum ETF until March 10.
Today @coinbase responded to @SECGov's request for comment on the proposed @Grayscale Ether Trust ($ETHE) ETP. 27 pages and 96 citations that provide the (1) legal, (2) technical, and (3) economic rationale for approval. 1/6
— paulgrewal.eth (@iampaulgrewal) February 21, 2024
*This is not investment advice.
