Ethereum Spot ETF Expected in the US Market
An Ethereum (ETH) spot ETF is set to enter the US market following the potential approval of several Bitcoin (BTC) based equivalents next week. According to Bloomberg ETF analyst James Seyffart, the Securities and Exchange Commission (SEC) has quietly acknowledged ETH as a commodity, placing it in the same regulatory category as BTC. This recognition comes after the SEC approved Ethereum futures ETFs from VanEck, ProShares, Bitwise, and Valkyrie in August. The approval of leveraged Bitcoin futures ETF earlier this year signaled to the market that regulators may be open to listing crypto products with higher risk profiles, such as Ethereum futures.
Likelihood of ETF Approval
The SEC has not provided explicit details on whether it will approve or deny Bitcoin spot ETF applications from BlackRock, Fidelity, Grayscale, and others. However, analysts like Seyffart believe there is a 90% chance of approval early next week. While Ethereum ETFs are not guaranteed yet, it would be difficult for the SEC to deny them without going against their sister regulator, the Commodities and Futures Trading Commission (CFTC), which has recognized both BTC and ETH as commodities.
Hot Take: SEC Recognizes Ether as Commodity
The Securities and Exchange Commission (SEC) has implicitly recognized Ethereum (ETH) as a commodity rather than a security. This acknowledgment opens the door for an Ethereum spot exchange-traded fund (ETF) in the US market. The approval of Ethereum futures ETFs earlier this year indicated that regulators may be more open to listing crypto products with higher risk profiles. While there is uncertainty surrounding the approval of Ethereum ETFs, it would be challenging for the SEC to classify ETH as a security when its sister regulator, the Commodities and Futures Trading Commission (CFTC), has recognized it as a commodity. The crypto industry eagerly awaits the SEC’s decision next week.
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