Coinbase executives are meeting with the U.S. Securities and Exchange Commission (SEC) to support the approval of an Ethereum (ETH) exchange-traded fund (ETF) on the spot market.
A new memorandum shows that Coinbase executives met with the SEC earlier this week to push the regulator to greenlight crypto asset manager Grayscale’s application for an Ethereum ETF, saying data they provided shows that ETH spot markets are resilient to fraud.
According to Coinbase, the rationale the SEC used to approve Bitcoin (BTC) ETFs in the spot market earlier this year should also apply to exchange-traded products (ETPs) based on the leading smart contract platform.
Additionally, Coinbase says Ethereum has mechanisms in place that make it less susceptible to fraud and manipulation.
“The Commission’s rationale in deciding to approve spot Bitcoin ETPs applies with equal or greater force to ETH.
Ethereum has mechanisms in place that significantly limit ETH’s susceptibility to fraud and manipulation. Spot markets for ETH are highly indicative of a market that is resilient to fraud and manipulation.”
Although it approved BTC ETFs in January, the regulatory body postponed its decision on numerous bids to create Ethereum ETFs from major asset managers – such as BlackRock, Grayscale and Fidelity – around the same time.
As stated by the SEC at the time:
“The Commission deems it appropriate to establish an extended period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
Last month, international cross-border bank Standard Chartered said it expects the SEC to make a decision by May 23.
Ethereum is trading at $3,945 at the time of writing, a gain of 1.65% over the past 24 hours.
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