Grayscale and Coinbase met with the SEC on March 6 to address concerns about the conversion of the Ethereum Trust into a spot ETF.
Crypto firms Grayscale and Coinbase recently met with officials at the Securities and Exchange Commission to discuss a rule change for the launch of spot Ether exchange-traded funds (ETFs).
Grayscale is seeking to convert its Ethereum Trust — designed to track the Ether (ETH) market price — into an ETF, in a similar manner to the conversion of its Bitcoin 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.”
