Research from Coinbase suggests that decisions on a spot Ethereum (ETH) exchange-traded fund (ETF) could surprise investors.
In a new note, Coinbase Institutional says that an ETH ETF is a question of when, not if, and that the U.S. Securities and Exchange Commission (SEC) is likely looking at the decision with the same rationale that it did when approving the Bitcoin (BTC) ETFs earlier this year.
Coinbase notes that the SEC looked at the strong correlation between the price of spot BTC on the Chicago Mercantile Exchange (CME) – something that is also true for Ethereum.
“While there is uncertainty around a timely approval given the SEC’s apparent silence with issuers, we think that the existence of a US spot ETH ETF remains a question of when, not if. In fact, the primary rationale used to approve the spot BTC ETFs applies equally to spot ETH ETFs. That is, the correlation between the CME futures product and the…
