Ethereum

Bitcoin ETF

Spot

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/coinbase-supports-grayscales-ethereum-trust-conversion-to-spot-product/" data-wpel-link="internal">Coinbase Supports Grayscale’s Ethereum Trust Conversion to Spot Product</a> 
The United States cryptocurrency exchange Coinbase firmly supported Grayscale’s application to convert its <a href="https://en.coin-turk.com/cryptocurrency-market-in-decline-ethereum-eth-falls-back-to-critical-levels/" data-wpel-link="internal">Ethereum</a> Trust into a spot exchange-traded product, with one of their key arguments being that Ethereum is not viewed as a security. On February 22nd, Coinbase’s Chief Legal Officer Paul Grewal shared a 27-page letter summarizing the legal, technical, and economic reasons why the Securities and Exchange Commission (SEC) should approve an Ethereum-based ETF fund. 
<h2 class="p1" style="text-align: justify" id="coinbase-s-striking-statements">Coinbase’s Striking Statements</h2> 
Coinbase made a total of five main arguments, but the most striking was the claim that Ethereum is appropriately classified as a commodity, not a security, as evidenced by the Commodity Futures Trading Commission’s (CFTC) approval of Ethereum futures, statements from SEC officials, and court decisions. Moreover, the SEC did not object to the CFTC’s assessment of Ethereum as a commodity: 
<blockquote> 
 “Our letter states the obvious to anyone who pays even the slightest attention to the matter: Ethereum is not a security. In fact, before and after the merger, the SEC, CFTC, and the market have treated Ethereum as a commodity, not a security.” 
</blockquote> 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-318004 size-full" src="https://coin-turk.com/wp-content/uploads/2024/02/paulgrewal-tweet.png" alt="" width="1084" height="639"> 
The second argument of the letter states that the SEC’s approval of spot <a href="https://coin-turk.com/kripto-twitter-bitcoinin-cokusune-ragmen-hala-umutlu" data-wpel-link="internal">Bitcoin</a> ETF applications, while not stronger, is equally valid for an Ethereum ETF fund. Market data showing the widespread ownership and trading activity of Ethereum, along with high liquidity and tight trading spreads, were presented as indicators of an efficient and mature market. 
<h2 class="p1" style="text-align: justify" id="details-on-ethereum-etfs">Details on Ethereum ETFs</h2> 
Ethereum futures ETF funds are similar to spot Ethereum-based funds, so it would be arbitrary for the SEC to approve one but not the other, considering the tight correlations. The firm also argued that the technological and operational security mechanisms inherent in the Ethereum blockchain ecosystem significantly limit the susceptibility to fraud and manipulation associated with Ethereum. 
Additionally, the asset’s market depth, trading tightness, and price correlation across spot markets were presented as indicators of a market resistant to fraud and manipulation. Lastly, Coinbase mentioned that it has sophisticated market surveillance to monitor transactions on its platform and an agreement with the Chicago Mercantile Exchange (CME). 
The letter was submitted in response to a proposed rule change by NYSE Arca to list and trade shares of Grayscale Ethereum Trust (ETHE) as an Ethereum ETF. The SEC is seeking public feedback on the proposed rule changes before making a decision. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-318003" src="https://coin-turk.com/wp-content/uploads/2024/02/nate-tweet-1.png" alt="" width="500" height="700"> 
<h5>The post first appeared on COINTURK NEWS: <a href="https://en.coin-turk.com/coinbase-supports-grayscales-ethereum-trust-conversion-to-spot-product/" data-wpel-link="internal">Coinbase Supports Grayscale’s Ethereum Trust Conversion to Spot Product</a></h5>

Coinbase Supports Grayscale’s Ethereum Trust Conversion to Spot Product

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