Coinbase, one of the largest cryptocurrency exchanges in the world, has asked the US Securities and Exchange Commission (SEC) to approve a spot Ethereum exchange-traded fund (ETF)
Paul Grewal, the chief legal officer of Coinbase, wrote a 27-page letter to the SEC for the approval of spot Ethereum ETF. The letter also states the legal, economic, and technical grounds for the approval of the Ethereum ETF
Last month, the SEC approved the spot Bitcoin ETF marking a milestone in Bitcoin history.
A green light by the SEC could mark a remarkable movement and stepping stone for Ethereum.
According to Grewal, Ethereum should be seen as commodity and not as a security. Ethereum shifted from a proof of work to a proof of stake mechanism. Grewal stated the proof of stake mechanism prevents manipulation and reduces risk.
In December, Last year the SEC delayed greyscale approval of spot Ethereum ETF. The SEC decided to extend the review period of 45 days to evaluate the proposal thoroughly.
Grewal stated, “The economics show that Ethereum is as resilient as Bitcoin in satisfying the Commission’s standard for ETP (exchange-traded product) approvals.”