• Home
  • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • NFTs
    • Blockchain
    • DeFi
    • AI
    • Policies
  • Market
    • Trends
    • Analysis
  • Interviews
  • Discover
    • For Beginners
    • Tips
  • All Posts
Hot News

Astar Lowers Base Staking Rewards to Mitigate Inflationary Pressure

2025-04-18

Imminent Bitcoin Price Volatility as Speculators Transfer 170K BTC — CryptoQuant

2025-04-18

Spar Supermarket in Switzerland Begins Accepting Bitcoin Payments

2025-04-18
Facebook X (Twitter) Instagram
X (Twitter) Telegram
BlockoalaBlockoala
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • NFTs
    • Blockchain
    • DeFi
    • AI
    • Policies
  • Market
    • Trends
    • Analysis
  • Interviews
  • Discover
    • For Beginners
    • Tips
  • All Posts
Subscribe
BlockoalaBlockoala
Home » Coinbase advocates for Ether ETFs in response to analysts’ caution regarding ‘concentration risk’
Ethereum

Coinbase advocates for Ether ETFs in response to analysts’ caution regarding ‘concentration risk’

2024-02-22No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Coinbase advocates for Ether ETFs in response to analysts' caution regarding 'concentration risk'
Coinbase advocates for Ether ETFs in response to analysts' caution regarding 'concentration risk'
Share
Facebook Twitter LinkedIn Pinterest Email

Coinbase, a leading cryptocurrency exchange in the United States, has expressed its support for Grayscale’s application to convert its Ethereum Trust into a spot Ether exchange-traded product (ETP). In a detailed letter to the U.S. Securities and Exchange Commission (SEC), Coinbase outlined five key arguments to support the approval of an Ether-based ETP.

The first argument made by Coinbase is that Ether (ETH) should be classified as a commodity, not a security. This is backed by the approval of ETH futures by the U.S. Commodity Futures Trading Commission (CFTC), as well as statements from SEC officials and court rulings. Coinbase points out that the SEC has not objected to the CFTC’s treatment of ETH as a commodity.

Coinbase also highlights Ethereum’s proof-of-stake consensus, which has strong governance and mitigates risks of fraud and manipulation. The market data shows that ETH ownership and trading activity are well dispersed, indicating an efficient and mature market.

The second argument made by Coinbase is that the SEC’s approval of spot Bitcoin exchange-traded funds (ETFs) should also apply to an Ethereum ETP. As ETH futures ETFs are similar to spot Ethereum-based funds, it would be arbitrary for the SEC to approve one but not the other. Coinbase emphasizes the tight correlation between these products.

Furthermore, Coinbase argues that Ethereum’s blockchain has robust technological and operational security mechanisms that limit the susceptibility of ETH to fraud and manipulation. The market depth, tight spreads, and price correlation across spot markets further indicate a resilient market.

To address concerns about concentration risk, Coinbase asserts that it has sophisticated market surveillance tools to monitor trading on its platforms and has a partnership with the Chicago Mercantile Exchange.

The letter from Coinbase was filed in response to a proposed rule change by NYSE Arca to list and trade shares of the Grayscale Ethereum Trust as an Ethereum ETP. The SEC seeks public feedback before making a decision on proposed rule changes.

In contrast, S&P Global analysts have expressed concerns about spot Ethereum ETFs that include staking, as they believe it could introduce new concentration risk to the Ethereum network. Some ETF applicants, such as ARK Invest and Franklin Templeton, allow staking in their funds. According to Dune Analytics, Lido currently has a 31.5% share of all staked Ethereum.

Overall, Coinbase’s letter supports the approval of an Ether-based ETP, emphasizing ETH’s classification as a commodity, its strong governance, market efficiency, and resistance to fraud and manipulation.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Astar Lowers Base Staking Rewards to Mitigate Inflationary Pressure

2025-04-18

Imminent Bitcoin Price Volatility as Speculators Transfer 170K BTC — CryptoQuant

2025-04-18

Spar Supermarket in Switzerland Begins Accepting Bitcoin Payments

2025-04-18

Sygnum Predicts Potential Altcoin Surge in Q2 2025 Due to Enhanced Regulations

2025-04-18
Add A Comment

Leave A Reply Cancel Reply

Editors Picks

Astar Lowers Base Staking Rewards to Mitigate Inflationary Pressure

2025-04-18

Imminent Bitcoin Price Volatility as Speculators Transfer 170K BTC — CryptoQuant

2025-04-18

Spar Supermarket in Switzerland Begins Accepting Bitcoin Payments

2025-04-18

Sygnum Predicts Potential Altcoin Surge in Q2 2025 Due to Enhanced Regulations

2025-04-18
Latest Posts

Astar Lowers Base Staking Rewards to Mitigate Inflationary Pressure

2025-04-18

Imminent Bitcoin Price Volatility as Speculators Transfer 170K BTC — CryptoQuant

2025-04-18

Spar Supermarket in Switzerland Begins Accepting Bitcoin Payments

2025-04-18
Blockoala
X (Twitter) Telegram
  • Home
  • News
  • Market
  • Interviews
  • Discover
  • All Posts
Copyright © 2025 Blockoala. All rights reserved.

Type above and press Enter to search. Press Esc to cancel.