Grayscale, Coinbase Sit Down With SEC Over Spot Ether ETF
Crypto firms Grayscale and Coinbase have met with the US Securities and Exchange Commission (SEC) to discuss a rule change for the launch of spot Ether exchange-traded funds (ETFs).
Grayscale is seeking to convert its Ethereum Trust, which tracks the market price of Ether, into an ETF, similar to the conversion of its Bitcoin Trust in January.
Coinbase argued that the same reasoning that led to the approval of Bitcoin ETFs should be applied to Ether since the token has “mechanisms that significantly limit ETH’s susceptibility to fraud and manipulation.”
Coinbase also emphasized the correlation between Ether futures and spot markets, similar to the Bitcoin market.
Grayscale is also proposing a second ETF for Ether futures trading. Some analysts have suggested that Grayscale may be using its futures ETF application as a “trojan horse” to corner the SEC into approving its spot Ether ETF.
Several asset managers, including Invesco, Galaxy Digital, Fidelity, Franklin Templeton, and BlackRock, are seeking the green light for a spot Ether ETF. Final deadlines for an SEC decision are expected in May.
(With inputs from Shikha Singh)
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