James Seyffart, an ETF analyst, claims that the United States securities regulator wholeheartedly accepted Ether as a commodity after approving Ethereum futures exchange-traded funds.
The U.S. Securities and Exchange Commission (SEC) unconditionally approved Ether as a commodity. This follows its approval of ETH futures exchange-traded funds (ETFs) in 2022. According to James Seyffart, an ETF analyst, a spot ETF variant is possibly set for this year.
CFTC Labels Ethereum Commodity
Seyffart spoke during CryptoQuant’s private webinar on January 4 and suggested the acceptance of Ether futures exchange-traded funds in October last year. He noted that the Securities and Exchange Commission did not object to coin’s grouping via the exchange-traded fund registration process with the Commodities Futures Trading Commission (CFTC).
The Commodities Futures Trading Commission is deliberately referring to Ethereum as a commodity. They do not refer to them as securities, and the SEC has ratified Ethereum futures exchange-traded funds.
As such, Gary Gensler will not definitely say if Ethereum is a commodity or security. Additionally, ratifying the Ethereum futures ETFs shows their implicit acceptance as commodities futures.
Seyffart noted the Securities and Exchange Commission cannot challenge the categorization. The initial Ether futures exchange-traded funds were listed in the United States on October 2.
Spot Bitcoin ETFs Hopefuls Eye Cboe Listing
Numerous investment companies unveiled nine funds on the Chicago Board Options Exchange (Cboe). They included VanEck, Kelly, ProShares, Bitwise, Volshares, and Bitwise. Seyffart noted that the Securities and Exchange Commission could not find itself in court and be compelled to unlist futures exchange-traded funds in case it considered Ether security.
The categorization is vital because securities and commodities exchange-traded funds encounter different legal requirements. Additional regulatory burdens and taxes are linked to the securities in this case.
Seyffart noted that the SEC would not be the only one acting against the industry. If they refer to Ethereum as a security, it will go against the CFTC, the sister regulator. As such, there is a possibility of Ethereum ETFs being accepted this year.
The Securities and Exchange Commission recently lost a case involving an identical dispute. In this case, it omitted the Spikes Index, a stock volatility index, from the meaning of securities futures. It claimed that it enhanced competition among these kinds of indexes. He also said there is precedent to show the importance of these things’ registration.
The Securities and Exchange Commission has an ultimate verdict for Ark 21Shares, VanEck, and Hashdex’s spot Ether exchange-traded fund in May this year. Over verdicts’ deadlines are in the following months.
Before that, the regulator should reveal its decision on spot Bitcoin exchange-traded funds. Seyffart envisages a ratification by January 10, with $10B moving into Bitcoin exchange-traded funds within a year.
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