Ethereum

Galaxy

Coinbase Global Inc (NASDAQ: COIN), the US’s largest <a href="https://news.todayq.com/zachxbt-exposes-crypto-influencers-pump-and-dump-scheme/" rel="noopener noreferrer nofollow">crypto exchange</a>, made a major move in the way of approval around the spot Ethereum Exchange-Traded Fund (ETF). The crypto exchange sent out a comprehensive 27 page response to the Securities and Exchange Commission (SEC) request for comments on the proposed Grayscale Ether Trust (ETHE) exchange-traded product (ETP). Coinbase backing ETH ETF? 
Paul Grewal, Chief Legal Officer of Coinbase, in a post revealed this major move. He mentioned that the response is backed by 96 citations. The document articulates the legal, technical, and economic justifications for the approval of the ETHE ETP.
This move comes in when the <a href="https://news.todayq.com/sec-key-crypto-unit-leader-leaves-amid-impending-etf-decisions/" rel="noopener noreferrer nofollow">SEC has delayed</a> a decision on a spot ether ETF proposed by Invesco and Galaxy Digital.
Coinbase’s 27-page response to the SEC regarding the Grayscale Ether Trust ETP outlines the legal standing of Ethereum as a commodity, not a security. However, it highlights the ETH’s treatment by regulatory bodies and the market. The justification is provided on both pre and post Merge, as a key argument for approval.
According to the document submitted, Coinbase highlighted Ether’s Proof of Stake (PoS) governance. It pointed out the network’s characteristics. This includes ownership concentration, consensus, liquidity, and governance. It mentioned that this structure presented a crucial mitigating factor against the risks of fraud and manipulation. What does it suggest? 
Coinbase’s submission suggests that Ether shows economic resilience as compared to Bitcoin (BTC). This meets the SEC’s standard for approving ETPs. However, the economic analysis supports the case for allowing ETHE ETP. This aligns with Coinbase’s commitment to boosting innovation in the crypto space.
This move comes in as SEC has announced a delay in its decision on a spot ether ETF proposed by Invesco and Galaxy Digital. An ETH ETF approval will similarly provide professional investors direct exposure to spot ether. However, it will also depart from the current reliance on ether futures listed on CME for regulated U.S. investors.
Earlier, Bloomberg Intelligence analyst James Seyffart reported that the delayed decision was anticipated. He added that more delays are expected in the coming months. The crucial date for spot Ethereum ETFs is identified as May 23. This aligns with VanEck’s final deadline for its ETF application.
Financial experts anticipate a potential surge of up to 70% in Ether’s value in the coming months. ETH price have surged by more than 22% in the last 30 days. It is trading at an average price of $2,977, at the press time.
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Coinbase fires back, Will SEC approve Ethereum ETF soon?

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