The largest U.S. cryptocurrency exchange met with the Securities and Exchange Commission last week over Grayscale’s proposed spot Ethereum (ETH) exchange-traded fund.
Publicly traded Coinbase made a presentation to Wall Street’s top regulators to talk about Grayscale’s proposed product, documents filed Wednesday at the regulator show.
Last October, cryptocurrency fund manager Grayscale filed an application with the SEC to convert the Grayscale Ethereum Trust (ETHE) into a spot ETH ETF. The proposed ETF would provide investors with direct exposure to the second-largest cryptocurrency. It will be traded on stock exchanges, allowing investors to purchase shares that track the price of ETH.
Coinbase’s presentation addressed potential market manipulation by cryptocurrency exchanges, noting that the exchange’s “entering into a comprehensive surveillance sharing agreement with the Chicago Mercantile Exchange will help monitor fraud and manipulation.” It was revealed.
“The ETH spot market demonstrates a market that is resilient to fraud and manipulation,” the presentation said, adding, “Cryptocurrencies have mechanisms in place that significantly limit ETH’s vulnerability to fraud and manipulation.”
In January, the SEC approved 11 spot Bitcoin (BTC) ETFs to begin trading. After a decade of rejection, the investment vehicle is now trading on the stock exchange and has been a huge success with huge inflows of funds.
Grayscale was one of the approved fund managers. Converted the popular Bitcoin Trust to a spot Bitcoin ETF.
It is now working with other reputable financial institutions to seek regulatory approval to do the same for ETH, the second-largest digital coin by market capitalization.
British multinational bank Standard Chartered said in a report last month that it expects the ETH ETF to receive SEC approval by May, which could result in a surge in asset prices.
On Friday, ETH hit $4,000 per coin for the first time since 2021. ETH price It’s slightly lower at $3,948, according to CoinGecko data.
Edited by Ryan Ozawa.
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