Coinbase is in Favor of Spot Ethereum ETFs

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The United States cryptocurrency exchange Coinbase has shown strong support for Grayscale’s request to convert the Ethereum Trust into an exchange-traded product for spot Ether.

One of their key arguments is that Ether should not be classified as a security. Paul Grewal, Coinbase’s chief legal officer, shared a 27-page letter on Feb. 22 outlining the reasons why the Securities and Exchange Commission should approve an ETP based on Ether.

Coinbase presented five major arguments, including the fact that the CFTC has approved Ether futures and SEC officials have made statements acknowledging it as a commodity, not a security.

The SEC has also not raised any concerns about the CFTC’s treatment of Ether as a commodity. According to Grewal, anyone who has paid even slight attention to the topic knows that Ether is not a security.

This has been the case before and after the merge, and is reflected in the actions of both agencies and the market.