Crypto exchange Coinbase has urged the US Securities and Exchange Commission (SEC) to approve the Grayscale Ethereum trust, according to Paul Grewal, the company's chief legal officer.
Grewal has said on social media that Coinbase has filed a response to the SEC's call for comments, providing reasons why the trust should be approved.
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The letter highlights Ethereum is not classified as a security by the SEC or other regulatory bodies. Instead, it is considered a commodity, both before and after The Merge.
Analysts predict the SEC will approve spot Ethereum ETFs as early as May of this year. Last year, Grayscale and NYSE Arca applied to convert the Grayscale Ethereum trust fund into a spot Ethereum ETF.
With the approval of spot Ethereum ETFs, investors will be able to bet on the price of the second largest crypto without actually owning the asset.