{"id":251968,"date":"2024-02-22T10:52:23","date_gmt":"2024-02-22T05:22:23","guid":{"rendered":"https:\/\/dripp.zone\/news\/coinbase-throws-its-weight-behind-grayscales-spot-ethereum-etf-approval-crypto-news\/"},"modified":"2024-02-22T10:52:26","modified_gmt":"2024-02-22T05:22:26","slug":"coinbase-throws-its-weight-behind-grayscales-spot-ethereum-etf-approval-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/coinbase-throws-its-weight-behind-grayscales-spot-ethereum-etf-approval-crypto-news\/","title":{"rendered":"Coinbase Throws Its Weight Behind Grayscale\u2019s Spot Ethereum ETF Approval – Crypto News"},"content":{"rendered":"

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The world\u2019s second-largest cryptocurrency Ethereum (ETH) takes center stage as attention shifts largely from the spot Bitcoin ETF to the spot Ethereum ETF<\/a>, scheduled to come in May 2024. As a result, the ETH price has also outshined BTC in recent times. Since the beginning of 2024, Ether has surged 30% against Bitcoin\u2019s 22% gains.<\/p>\n

Coinbase Favours Grayscale\u2019s Spot Ethereum ETF Proposal<\/h3>\n

In response to the U.S. SEC, Coinbase has addressed the approval request for Grayscale\u2019s Ethereum spot ETF listing application. The application aims to transform the Grayscale Ethereum Trust into a spot Ethereum ETF.<\/p>\n

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Paul Grewal, the chief legal officer at Coinbase, emphasized in the letter that Ethereum (ETH) is not classified as a security. Both before and after the Merge, regulatory bodies such as the SEC and the CFTC, alongside market participants, have treated ETH as a commodity rather than a security.<\/p>\n

The transition to Ether\u2019s Proof of Stake mechanism has showcased robust governance, evidenced by factors like ownership distribution, consensus mechanisms, liquidity, and governance practices, all of which help to mitigate risks related to fraud and market manipulation, writes<\/a> Grewal.<\/p>\n

Our commitment remains steadfast in supporting innovation and cultivating an open, secure, and inclusive financial environment. We advocate for ongoing dialogue and comprehensive research to enable informed regulatory decisions in the ever-evolving landscape of cryptocurrency.<\/p>\n

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Grayscale Push for Ether ETF<\/h3>\n

Grayscale is popular for its pivotal role in pushing forward the spot bitcoin ETFs, which subsequently paved the path for major financial players like BlackRock and Fidelity to offer bitcoin exposure to their clientele. This achievement came after Grayscale took legal action against the SEC last year, contesting the denial of its application to transform its GBTC Bitcoin Trust into a spot ETF.<\/p>\n

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During a panel discussion on bitcoin, Dave LaValle, Grayscale\u2019s head of ETFs, fielded a question about the potential scenario of Grayscale suing the SEC again if its request to convert its Ethereum Trust into a spot ETF was denied.<\/p>\n

LaValle responded<\/a> by indicating that Grayscale would need to assess the situation and gather relevant information before making any decisions. He expressed cautious optimism about the approval prospects, estimating a 50% chance of approval by May.<\/p>\n

S&P Global Raises Warnings on ETF Approval<\/h3>\n

Analysis from S&P Global Ratings suggests that the approval of proposed Ethereum ETFs in the U.S., particularly those incorporating staking, may heighten Ethereum\u2019s concentration risk. In a report published on Tuesday, S&P analysts Andrew O\u2019Neill and Alexandre Birry said:<\/p>\n

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\u201cU.S. spot ether ETFs that incorporate staking could become large enough to change validator concentrations in the Ethereum network, for better or worse. It is therefore critical to understand how ETF issuers\u2019 choices will drive concentration risks.\u201d<\/p>\n<\/blockquote>\n

ETH Price Action and Derivatives Data<\/h3>\n

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The Ethereum(ETH) price surged past $3,000 on Wednesday, however faces some pullback amid the broader market sell-off. Stefan von Haenisch, head of trading at OSL SG Pte in Singapore, anticipates Ether to maintain its lead over Bitcoin<\/a> in the upcoming months, particularly until the approaching potential ETF approval in April-May.<\/p>\n

However, he expressed skepticism regarding US Securities and Exchange Chair Gary Gensler\u2019s inclination to approve Ether ETFs unless compelled by court rulings. Top players like BlackRock and Fidelity have applied for the approval of the Ethereum investment product. VanEck<\/a> is the latest to join the bandwagon.<\/p>\n

Furthermore, the open interest in CME Group\u2019s Ether futures market is nearing a record high, signaling a growing demand for Ether-related exposure among institutional investors in the derivatives sector.<\/p>\n

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills. <\/p>\n<\/p><\/div>\n

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