Coinbase Advocates for Grayscale’s Ethereum ETF Approval

TL;DR
1.Ethereum's commodity status supports Grayscale ETP approval.
2.Coinbase emphasizes Ethereum market strength and CME oversight.
3.Coinbase urges SEC consistency: Support Ether ETPs like Bitcoin.
4.Coinbase bolsters Ethereum ETP approval push for regulatory clarity.

Coinbase, the leading cryptocurrency exchange in the United States based on trading volume, has pressed the Securities and Exchange Commission (SEC) to greenlight Grayscale's proposal to convert its Ethereum Trust into a spot Ether ETP.

Coinbase Backs Grayscale’s Ether ETP Application

In a recent communication to the SEC, Coinbase's chief legal officer presented compelling arguments in favor of approving Grayscale's Ethereum Exchange-Traded Product (ETP). Among the highlighted points, Coinbase emphasized Ethereum's classification as a commodity rather than a security, echoing industry sentiment and regulatory treatment.

Market Considerations and Manipulation Safeguards

The letter underscored the robustness of the Ethereum market, pointing out its substantial depth, liquidity, and a market capitalization exceeding $315 billion. Coinbase contended that these factors render Ethereum less susceptible to manipulation by malicious actors, assuaging concerns about market integrity.

Furthermore, Coinbase highlighted the presence of the Chicago Mercantile Exchange (CME) futures market for Ethereum, which provides regulatory oversight and serves as an additional safeguard against manipulation attempts in the spot market.

Parity in Regulatory Treatment

Coinbase argued that the SEC's rationale supporting Bitcoin Exchange-Traded Products (ETPs) applies equally, if not more strongly, to Grayscale's proposed Ether ETP. The exchange stressed that denying approval for an Ether spot ETP while permitting Ether futures ETPs would be arbitrary and inconsistent.

Closing Remark

Coinbase's advocacy for Grayscale's Ethereum ETF underscores the industry's push for regulatory clarity and accessibility. As the SEC faces the impending deadline, Coinbase's rationale adds weight to the case for approving Grayscale's Ethereum ETP.

Coinbase Advocacy

Coinbase advocates for the approval of Grayscale's proposal to convert its Ethereum Trust into a spot Ether ETP, presenting compelling arguments to the SEC. They emphasize Ethereum's classification as a commodity, its robust market with high liquidity, and regulatory oversight from entities like the CME. Coinbase stresses the need for regulatory consistency, arguing that denying approval would be arbitrary. Overall, their advocacy reflects the industry's quest for regulatory clarity and accessibility.