Coinbase met with SEC over spot Ethereum ETFs

According to documents about the meeting, Coinbase said that the ether ETFs would also be counted as commodity-based shares


Artwork by Crystal Le


Coinbase met with officials at the Securities and Exchange Commission to discuss Grayscale’s proposed ether ETF. 

Attorneys from Davis Polk, who represent Grayscale, were also present according to documents from the SEC. Various members of the SEC’s Division of Trading and Markets were present.

A presentation from Coinbase was given at the meeting, though it’s not clear what else was discussed. In the SEC’s meeting disclosure, the agency included the Coinbase presentation in its filing.

Per Coinbase’s presentation, shares of a potential ether ETF would be categorized as commodity-based shares, the same as the bitcoin ETFs. 

Read more: Ether is the Schrödinger’s cat of crypto

Coinbase also said, “spot markets for ETH are highly indicative of a market resilient to fraud and manipulation.” Coinbase also said that it’ll have a surveillance-sharing agreement in place with the CME to “assist in surveilling for fraud and manipulation.”

However, the meeting may not be a “good sign,” according to Bloomberg senior ETF analyst Eric Balchunas. 

Read more: Ethereum spot ETFs are next

“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 [passed] when they gave comments on btc ETFs. Further, there’s no court loss hovering over,” he wrote in a post on X.

Loading Tweet..

Bloomberg analyst James Seyffart said, “no comments so far isn’t a great look.” Earlier this year, Seyffart told Blockworks that he believed there was a 60% chance that the SEC would greenlight the ETH ETFs in May.

The Coinbase presentation also included data to show that the ether futures markets and the spot markets are as strong as bitcoin markets, a fact that ETF Store president Nate Geraci pointed out on X.

“I’m not sure what grounds for disapproval of spot ether ETFs would be,” Geraci added.

Loading Tweet..

Earlier this week, the SEC delayed decisions on BlackRock and Fidelity’s spot ETH ETF applications. The delays were expected, however, with experts saying that the SEC will decide on the ether ETFs in May.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

ao cover.jpg


Arweave recently launched the testnet for AO computer, a new messaging protocol that will sit atop a PoS network and aims to become a scalable global compute platform through parallel processing and modularity.


The US spot bitcoin fund category has notched negative net flows over the course of a week just three times since coming to market in January


Elsewhere, rank-and-file employees move around and Binance’s head of legal in Europe departs


Plus, a Dragonfly partner shares his view on the crypto VC market, and a mining hardware firm raises $80 million


Plus, a Bored Ape burger restaurant closes, and Crypto: The Game presses on


Bitcoin scarcity is a meme, with or without the halvings


The current state of blockchain interoperability poses an existential threat to the mainstream adoption of blockchain technology as a whole