Coinbase supports Ethereum spot ETF: ETH is not a security!

Coinbase, the largest cryptocurrency exchange in the United States, has backed Grayscale's bid to convert its Ethereum trust fund into a spot exchange-traded fund (ETF).

In this regard, this exchange has officially addressed the Securities and Exchange Commission (SEC) of this country and asked for the approval of the proposed rule change by the NYSE Arca market to list and trade the shares of the Grayscale Ethereum Trust Fund as a trust based on Kala has supported.

The move comes as several global financial giants, including BlackRock, Franklin Templeton and Fidelity, have also applied to launch an Ethereum spot ETF. This shows the increasing interest of investors in Ethereum-based financial products.

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At the heart of Coinbase's debate is Ethereum's classification as a commodity, not a security, a distinction that has drawn much attention in recent regulatory actions.

Coinbase's position is supported by the Commodity Futures Trading Commission's (CFTC) regulation of ETH futures, various federal court rulings, and the absence of any dissenting position from the SEC.

In the published letter, the Coinbase team emphasized Ethereum's strong governance and proof-of-stake consensus algorithm and argued that the system effectively reduces the risks of fraud and manipulation.

Overall, there is a lot of optimism in the Ethereum community regarding the SEC's decision regarding the Ethereum spot ETF. In the meantime, Larry Fink, the CEO of the investment giant BlackRock, has also expressed optimism about the Ethereum ETF.

He sees such a product as a catalyst for wider adoption of asset tokenization, a development he eagerly anticipates for the future.