Coinbase met with officers on the Securities and Alternate Fee to debate Grayscale’s proposed ether ETF.
Attorneys from Davis Polk, who characterize Grayscale, have been additionally current in line with paperwork from the SEC. Varied members of the SEC’s Division of Buying and selling and Markets have been current.
A presentation from Coinbase was given on the assembly, although it’s not clear what else was mentioned. Within the SEC’s assembly disclosure, the company included the Coinbase presentation in its submitting.
Per Coinbase’s presentation, shares of a possible ether ETF could be categorized as commodity-based shares, the identical because the bitcoin ETFs.
Learn extra: Ether is the Schrödinger’s cat of crypto
Coinbase additionally mentioned, “spot markets for ETH are extremely indicative of a market resilient to fraud and manipulation.” Coinbase additionally mentioned that it’ll have a surveillance-sharing settlement in place with the CME to “help in surveilling for fraud and manipulation.”
Nonetheless, the assembly will not be a “good signal,” in line with Bloomberg senior ETF analyst Eric Balchunas.
Learn extra: Ethereum spot ETFs are subsequent
“Usually I’d say this was [a] good signal however so far as I do know the Employees has not given any feedback but to the issuers, which isn’t an excellent signal as we [passed] once they gave feedback on btc ETFs. Additional, there’s no court docket loss hovering over,” he wrote in a publish on X.
Bloomberg analyst James Seyffart mentioned, “no feedback to this point isn’t a fantastic look.” Earlier this yr, Seyffart instructed Blockworks that he believed there was a 60% probability that the SEC would greenlight the ETH ETFs in Might.
The Coinbase presentation additionally included information to point out that the ether futures markets and the spot markets are as robust as bitcoin markets, a undeniable fact that ETF Retailer president Nate Geraci identified on X.
“I’m undecided what grounds for disapproval of spot ether ETFs could be,” Geraci added.
Earlier this week, the SEC delayed choices on BlackRock and Constancy’s spot ETH ETF purposes. The delays have been anticipated, nonetheless, with consultants saying that the SEC will determine on the ether ETFs in Might.
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