The post Coinbase Throws Its Weight Behind Grayscale’s Spot Ethereum ETF Approval appeared on BitcoinEthereumNews.com.

The world’s second-largest cryptocurrency Ethereum (ETH) takes center stage as attention shifts largely from the spot Bitcoin ETF to the spot Ethereum ETF, scheduled to come in May 2024. As a result, the ETH price has also outshined BTC in recent times. Since the beginning of 2024, Ether has surged 30% against Bitcoin’s 22% gains. Coinbase Favours Grayscale’s Spot Ethereum ETF Proposal In response to the U.S. SEC, Coinbase has addressed the approval request for Grayscale’s Ethereum spot ETF listing application. The application aims to transform the Grayscale Ethereum Trust into a spot Ethereum ETF. Paul Grewal, the chief legal officer at Coinbase, emphasized in the letter that Ethereum (ETH) is not classified as a security. Both before and after the Merge, regulatory bodies such as the SEC and the CFTC, alongside market participants, have treated ETH as a commodity rather than a security. The transition to Ether’s Proof of Stake mechanism has showcased robust governance, evidenced by factors like ownership distribution, consensus mechanisms, liquidity, and governance practices, all of which help to mitigate risks related to fraud and market manipulation, writes Grewal. Our commitment remains steadfast in supporting innovation and cultivating an open, secure, and inclusive financial environment. We advocate for ongoing dialogue and comprehensive research to enable informed regulatory decisions in the ever-evolving landscape of cryptocurrency. Grayscale Push for Ether ETF Grayscale is popular for its pivotal role in pushing forward the spot bitcoin ETFs, which subsequently paved the path for major financial players like BlackRock and Fidelity to offer bitcoin exposure to their clientele. This achievement came after Grayscale took legal action against the SEC last year, contesting the denial of its application to transform its GBTC Bitcoin Trust into a spot ETF. During a panel discussion on bitcoin, Dave LaValle, Grayscale’s head of ETFs, fielded a…

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Filed under: News - @ February 22, 2024 12:12 pm