Grayscale and Coinbase negotiate with SEC over Ether ETF

important point:

  • Grayscale and Coinbase lobbied with the SEC for approval of a spot ether ETF.
  • The relationship between Ether futures and the spot market was discussed and Grayscale proposed a second ETF for Ether futures.
  • The SEC’s final decision on spot ether ETFs is expected in May, as asset managers await regulatory clarity.

Grayscale and Coinbase met with the SEC on March 6 to address concerns about converting Grayscale’s Ethereum Trust into a spot ETF.

Crypto companies look to move forward with ETFs

Cryptocurrency firms Grayscale and Coinbase recently met with officials from the United States Securities and Exchange Commission (SEC) to discuss. Changes to the rules for the launch of spot ether exchange-traded funds (ETFs).

Grayscale is looking to convert its Ethereum Trust – which tracks the market value of Ether (ETH) – into an ETF, similar to converting its Bitcoin Trust into an ETF in January. The meeting held on March 6 came after the comment period on the proposal ended and focused on Concerns about possible market manipulation If the funds have been approved.

Arguments in favor of Ether ETFs

According to a filing shared by the SEC, Coinbase argued that the same logic for approving a Bitcoin ETF should apply to Ether, as the token did. “Mechanisms that significantly limit ETH’s susceptibility to fraud and manipulation”,

Another point of presentation is related to Coinbase Monitor Sharing Agreement with Chicago Mercantile Exchange (CME), The mechanism was implemented for Bitcoin ETFs at the request of the SEC to improve oversight of operations.

Nate Geraci of the ETF Store on X said Coinbase also highlighted the connection between ether futures and spot markets, similar to the Bitcoin market.

“Add to this that the SEC has approved an Ether Futures ETF on the CME and I’m not sure what reasons there would be to reject a Spot Ether ETF.”

Future Strategies and Perspectives

Grayscale is also offering one Second ETF for ether futures trading, The main difference between the spot and futures markets is that in the spot market, assets are traded immediately, whereas in the futures market, a contract is made to buy or sell an asset at a future date at a specific price.

Some analysts have suggested that Grayscale could use its ETF futures filings “Troy Horse” To force the SEC to approve its spot ether ETF.

Several asset managers, including Invesco, Galaxy Digital, Fidelity, Franklin Templeton and BlackRock, are seeking the green light for a spot ether ETF. The final deadline for an SEC decision is expected to be in May.

Bloomberg’s Eric Balchunas believes asset managers are still in the dark about regulators’ views on the crypto investment vehicle.

“Normally I would say this is a good sign, but as far as I know, the staff has not yet responded to issuers, which is not a good sign because when they responded to the BTC ETF We passed.”



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