The prospect of a spot Ethereum ETF is gaining momentum, with Bloomberg ETF analyst James Seyffart suggesting its likely debut in 2024. Seyffart, speaking at a CryptoQuant webinar, pointed out that the SEC's approval of Ether futures ETFs last year implicitly acknowledges ETH as a commodity. This is reinforced by the CFTC's clear designation of Ethereum as a commodity, not a security.
The launch of the first Ether futures ETFs in the U.S. in October 2023, with nine funds from firms like ProShares and VanEck, further cements this position. Seyffart highlighted that reclassifying Ether as a security could lead the SEC into legal challenges, necessitating the delisting of futures ETFs.
Seyffart's analysis also considers the SEC's relationship with the CFTC. Labeling Ethereum as a security would contradict the CFTC's stance, setting up a potential conflict between the two regulatory bodies.
The SEC's decision on applications for spot Ether ETFs, including those from VanEck, ARK 21Shares, and Hashdex, is expected by May 2024, with more decisions to follow.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
