Grayscale, Coinbase sit down with SEC over spot Ether ETF

Differences between Web 1.0, 2.0, and 3.0: Exploring the Evolution of the Internet

Grayscale and Coinbase, two prominent crypto firms, recently held a meeting with officials from the United States Securities and Exchange Commission (SEC) to discuss a potential rule change for the launch of spot Ether exchange-traded funds (ETFs). This development has sparked discussions about the differences between Web 1.0, 2.0, and 3.0, and the potential impact of Web 3.0 on the future of the internet.

The Mercruiser 3.0 Weber Conversion: A Step Towards Web 3.0?

One of the main talking points in the meeting was Grayscale’s plan to convert its Ethereum Trust into an ETF, following the successful conversion of its Bitcoin Trust in January. This move has raised questions about the differences between Web 1.0, 2.0, and 3.0, and whether Web 3.0 is the future of the internet.

Web 1.0 vs. Web 2.0 vs. Web 3.0: Understanding the Key Distinctions

During the meeting, Coinbase made a compelling argument for the approval of Ether ETFs, stating that the same reasoning that led to the approval of Bitcoin ETFs should be applied to Ether. This is because Ether has built-in mechanisms that significantly limit its susceptibility to fraud and manipulation, a key distinction between Web 1.0, 2.0, and 3.0.

Additionally, Coinbase highlighted their surveillance-sharing agreement with the Chicago Mercantile Exchange (CME), which was implemented for Bitcoin ETFs at the request of the SEC to improve trading monitoring. This further emphasizes the differences between Web 2.0 and 3.0, as Web 3.0 aims to enhance security and transparency through advanced technologies like blockchain.

Web 3.0 and the Metaverse: Are They One and the Same?

As discussions about Web 3.0 continue, some have questioned whether it is the same as the concept of the metaverse. While both involve advanced technologies and a more immersive internet experience, there are key differences between Web 1.0, 2.0, and 3.0, and the metaverse. Web 3.0 focuses on the internet’s infrastructure and capabilities, while the metaverse is a virtual world that users can interact with.

The Evolution Continues: The Differences Between Web 1.0, 2.0, 3.0, and 4.0

As the proposal for spot Ether ETFs is being reviewed by the SEC, the discussion about the differences between Web 1.0, 2.0, 3.0, and the potential for Web 4.0 continues. With each iteration, the internet evolves and becomes more advanced, highlighting the need for constant adaptation and innovation in the digital landscape.

The Correlation Between Ether Futures and Spot Markets

Coinbase has emphasized the relationship between Ether futures and spot markets, similar to the Bitcoin market. Nate Geraci of ETF Store on X noted that the SEC has already approved CME-traded Ether futures ETFs, making it unclear what grounds they would have to disapprove spot Ether ETFs.

Grayscale has also proposed a second ETF for Ether futures trading. The main difference between spot and futures markets is the timing of trades. In the spot market, assets are traded immediately, while in the futures market, contracts are made for future trades at a specific price.

Some analysts speculate that Grayscale may be using their futures ETF application as a “trojan horse” to push the SEC into approving their spot Ether ETF. Several asset managers, including Invesco, Galaxy Digital, Fidelity, Franklin Templeton, and BlackRock, are also seeking approval for a spot Ether ETF. The SEC is expected to make a decision by May.

Bloomberg’s Eric Balchunas believes that asset managers are still unsure about the stance of regulators on the cryptocurrency investment vehicle. Balchunas notes that while it may seem like a positive sign, the fact that the Staff has not yet provided any comments to the issuers is concerning. This is especially concerning as we have already passed the point where they have given comments on Bitcoin ETFs.

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