Grayscale and Coinbase in talks with SEC over Etherum Spot ETF

Discussion in 'Crypto Assets' started by Tokenz, Mar 9, 2024.

  1. Tokenz

    Tokenz

    Before you read this article, just know, that whenever the SEC "Sits Down" with crypto companies, it means they are making plans to approve something. Whenever the SEC rejects something, it means they will dissaprove something. But I'm sure most of us saw this coming from a mile away ;)

    Grayscale, Coinbase sit down with SEC over spot Ether ETF

    Grayscale and Coinbase met with the SEC on March 6 to address concerns about the conversion of Grayscale’s Ethereum Trust into a spot ETF.

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    Crypto firms Grayscale and Coinbase recently met with United States Securities and Exchange Commission (SEC) officials to discuss a rule change for the launch of spot Ether exchange-traded funds (ETFs).

    Grayscale is seeking to convert its Ethereum Trust — which tracks the market price of Ether

    ETH

    [​IMG]
    $3,941

    — into an ETF, similar to the conversion of its Bitcoin Trust to an ETF in January. The meeting, held on March 6, followed the end of the commenting period for the proposal and addressed concerns about possible market manipulation should the fund be approved.


    According to a presentation shared by the SEC, Coinbase argued that the same reasoning that led to the approval of Bitcoin ETFs should be applied to Ether since the token has “mechanisms that significantly limit ETH’s susceptibility to fraud and manipulation.”

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    Presentation by Coinbase on March 6. Source: SEC
    Another presentation point relates to Coinbase’s surveillance-sharing agreement with the Chicago Mercantile Exchange (CME). The mechanism was implemented for Bitcoin ETFs at the request of the SEC to improve trading monitoring.

    Coinbase also emphasized the correlation between Ether futures and spot markets, similar to the Bitcoin market, noted Nate Geraci of ETF Store on X. “Add-in that SEC approved CME-traded Ether futures ETFs and I’m not sure what grounds for disapproval of spot Ether ETFs would be.”

    Grayscale is also proposing a second ETF for Ether futures trading. The main difference between spot and futures markets is that spot market assets are traded immediately, whereas, in the futures market, contracts are made to buy or sell assets at a future date for a specific price.

    Some analysts have suggested that Grayscale may be using its futures ETF application as a “trojan horse” to corner the SEC into approving its spot Ether ETF.

    Several asset managers, including Invesco, Galaxy Digital, Fidelity, Franklin Templeton and BlackRock, are seeking the green light for a spot Ether ETF. Final deadlines for an SEC decision are expected in May.

    Bloomberg’s Eric Balchunas believes asset managers are still in the dark about regulators’ views on the crypto investment vehicle. “Normally I’d say this was [a] good sign but as far as I know the Staff has not given any comments yet to the issuers, which is not a good sign as we past when they gave comments on BTC ETFs,” Balchunas said.
     
    nitrene and johnarb like this.
  2. nitrene

    nitrene

    I hope it happens. Still holding my ETHE closed end fund.

    I found it interesting that Grayscale has a ton of tokens as CEFs like ETHE. They have 17 different ETFs/CEFs. I didn't even realize that Solana was available as a security on the OTCBB market. It is pretty illiquid but I bought some. I bought some Grayscale Basic Attention Token Trust (GBAT) in the morning and at one point it was up 100% in the afternoon. Of course price discovery is a concern with such wide bid-ask spreads.
     
  3. vanzandt

    vanzandt

    Ethereum and Bitcoin are yesterday's news. Old school. When Elon turns Twitter (X) into a payment platform... the Doggy Coins will be where it's at!

    Buy a few $1000 dollars worth and get ready to join Elon and I on Mars in 2035 for the most righteous shroom party humankind has ever seen.
     
    nitrene likes this.
  4. nitrene

    nitrene

    Yes we need a Dogecoin ETF. It would go to the moon. The r/WSB would love it.
     
    vanzandt likes this.
  5. vanzandt

    vanzandt

    I'm tellin' ya... Elon is up to something. I wouldn't add an avatar for no reason.
     
    semperfrosty likes this.
  6. vanzandt

    vanzandt

    Doggy Coin up 9.36% :wtf:
     
    semperfrosty likes this.
  7. vanzandt

    vanzandt

    upload_2024-3-14_9-10-40.jpeg
     
  8. Agree.
     
  9. And 104% for the month.
     
    vanzandt likes this.
  10. vanzandt

    vanzandt

    Bad doggy!

    Dogecoin USD (DOGE-USD)
    0.15 +0.01 (+6.12%)
     
    #10     Mar 17, 2024
    semperfrosty likes this.