Summary
Coinbase supports Grayscale’s spot Ethereum ETF application, urges SEC approval. Coinbase argues Ethereum is a commodity, not a security, due to market maturity and regulatory compliance. SEC previously stated ETH is not a security. Coinbase highlights Ethereum’s decentralized governance as a key factor. Concerns raised about concentration in Ethereum network with spot ETFs including staking options. SEC’s approval of Bitcoin spot ETFs boosted market.
Key Points
1. Coinbase has thrown its support behind Grayscale’s application to offer a spot Ethereum exchange-traded fund (ETF) by converting its current Ethereum Trust product and urged the SEC to grant approval.
2. Coinbase highlighted Ethereum’s market maturity and regulatory compliance, arguing that ETH is a commodity akin to Bitcoin, not a security.
3. Coinbase praised Ethereum’s decentralized governance as an effective measure to mitigate risks of fraud and manipulation, noting the network’s lack of central control as a key factor in its consideration as not a security by the SEC.