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The Coinbase team has asked the US Securities and Exchange Commission (SEC) to approve Grayscale's application to launch an ethereum (eth) spot ETF.
The company's chief lawyer, Paul Grewal, believes that approval of Grayscale's application is necessary through the preliminary conversion of the eth trust into an instrument.
Coinbase shared a call with the SEC to approve the tool as part of the regulator's comment process on the application. Grewal noted that the crypto exchange had presented to the Commission a “legal, technical and economic justification” for allowing the launch of Grayscale's ethereum spot ETF.
“Ether proof-of-stake has demonstrably strong governance that exhibits strong characteristics in terms of ownership concentration, consensus, liquidity and governance, mitigating fraud and manipulation risks.”
Paul Grewal, Chief Counsel at Coinbase
Grewal also noted that Coinbase is committed to supporting innovation and creating a transparent, secure and inclusive financial ecosystem. To this end, the company constantly maintains dialogue and investigates regulatory solutions in the cryptocurrency environment.
On January 25, the SEC postponed its consideration of Grayscale's ethereum ETF application until March 10. Commission Chairman Gary Gensler recalled that the approval of a bitcoin (btc) spot ETF was limited to a single cryptocurrency. The delay also affected BlackRock's similar bid for a spot crypto ETF.
Grayscale Chief Legal Officer Craig Salm believes the SEC will likely approve an ETF based on ethereum's spot price in summer 2024.
