Coinbase urges SEC to approve listing of Grayscale's proposed spot ether ETF
Coinbase’s Chief Legal Officer, Paul Grewal, announced on X that the company has replied to a Securities and Exchange Commission request for comment, asking for the approval of the Grayscale Ethereum Trust listing.Grayscale has requested converting the trust into a spot ether ETF.
Coinbase has urged the Securities and Exchange Commission's to list the Grayscale Ethereum ETH -1.22% trust for trading, according to the company's chief legal officer Paul Grewal.
Taking to the social media platform X , Grewal announced Coinbase had responded to the SEC's request for comment. He said Coinbase had provided the "legal, technical, and economic rationale" needed for approval.
"Our letter lays out what anyone knows who's paid even the slightest bit of attention to the subject: ETH is not a security. In fact, before and after the Merge, the SEC, the CFTC, and the market have treated ETH not as a security but a commodity," Grewal said in his post.
Analysts have predicted that the SEC will approve spot ether ETFs as early as May of this year. Last October, Grayscale and NYSE Arca filed to convert the Grayscale Ethereum trust to a spot ether ETF. Several firms, including giants like BlackRock and Fidelity, have also filed for spot ether ETFs. Some among those applicants are also aiming to generate additional yield by staking the underlying ether.
Investing in spot ether ETFs would allow investors to wager on the price of the second-largest cryptocurrency by market cap without having to purchase the underlying asset themselves.
Spot ether ETFs should be approved
In a letter Grewal posted to X , Coinbase made the argument that the SEC's approval of spot bitcoin ETFs "applies with equal – and in some ways greater – force for listing and trading" Grayscale's spot ether ETF.
"ETH’s market depth, tightness of spreads, and price correlation across spot markets are highly indicative of a market resilient to fraud and manipulation," Coinbase said in its letter to the regulator. "ETH’s notional dollar trading volume is significantly greater than the vast majority of the stocks that comprise the SP 500, including when adjusted for aggregate market value."
"Coinbase acts as a custodian in eight of the 11 recently approved U.S. bitcoin ETFs and is named as a staking institution by three of the four largest ether staking ETFs outside the U.S.," SP Global Ratings analysts Andrew O'Neill and Alexandre Birry said in a report published Tuesday.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
BlockDAG Breaks Out with $303M Presale & 10,000x Potential While Avalanche Stalls and Arbitrum Fails to Break Resistance
Compare BlockDAG's $303M rise, uncover AVAX's price delay, and analyze ARB's resistance zone. Track key shifts in crypto and see why BlockDAG leads this waveARB Price Rises Yet Lacks Breakout SignalAVAX Price Stuck Despite Rising ActivityBlockDAG’s Hybrid Tech and Global Reach Fuel $20 ProjectionSumming Up!

Kaspa Price Prediction 2026: Can It Hit $0.66 Before Qubetics Launches Its Mainnet?
Kaspa eyes $0.66 by 2026 with bullish momentum, while Qubetics leads Web3 interoperability with a $18M presale. Discover why both are 2025's top blockchain plays.Price Floors and Bullish Reversals: The Technical Side of Kaspa’s 2026 PathLayer-1 Competition and What Sets Kaspa ApartQubetics’ Cross-Chain Vision May Redefine Interoperability in 2026The Bottom Line: A Tale of Two Blockchain Strategies

Bitcoin Holds Above $104K After Iran Retaliation
Gumi Inc. Adds 80 Bitcoin to Corporate Treasury

Trending news
MoreCrypto prices
More








