Coinbase has formally supported Grayscale's proposal to turn its Ethereum Trust into an Ether exchange-traded product with a comprehensive 27-page response.

The company argues that Ethereum should be classified as a commodity, not a security, citing the decentralized nature and proof-of-stake governance of the Ethereum network.

Coinbase's response also tackles the issue of market manipulation, emphasizing Ethereum's robust defenses against fraud and manipulation attempts.

The SEC's ruling on Ethereum's status as a security remains a pivotal factor in the potential approval of spot Ether ETFs, anticipated no earlier than late 2025 or early 2026.

Industry players are divided on the timeline for approval, with JPMorgan giving a 50% chance by May and ARK Invest's president suggesting approval could come 'soon'.

At the time of reporting, Ethereum's market price stands at $2,961.