Crypto Companies Advocate for Approval of Spot Ether ETF with SEC
Grayscale and Coinbase recently met with the United States Securities and Exchange Commission (SEC) to discuss the approval of spot Ether exchange-traded funds (ETFs). The meeting, held on March 6, focused on the conversion of Grayscale’s Ethereum Trust into an ETF, similar to its Bitcoin Trust conversion in January.
During the meeting, Coinbase highlighted the mechanisms in place that limit Ether’s susceptibility to fraud and manipulation. They also emphasized the correlation between Ether futures and spot markets, arguing that the SEC’s approval of Ether futures ETFs on the CME should pave the way for spot Ether ETFs.
Grayscale proposed a second ETF for Ether futures trading, with some analysts suggesting this move could be a strategic tactic to pressure the SEC into approving the spot Ether ETF. Asset managers from firms like Invesco, Galaxy Digital, Fidelity, and BlackRock are awaiting regulatory clarity, with the final decision expected in May.
Despite the optimistic outlook, Bloomberg’s Eric Balchunas notes that asset managers are still waiting for feedback from the SEC, raising concerns about the lack of communication compared to past ETF approvals. The industry eagerly anticipates the SEC’s decision on spot Ether ETFs as they navigate the evolving landscape of crypto investments.