According to a report by Cointelegraph, Bloomberg ETF analyst James Seyffart stated that the US Securities and Exchange Commission (SEC) implicitly recognized Ethereum (ETH) as a commodity when it approved Ethereum futures ETF last year. This means that spot-based ETFs could potentially be launched this year.
During the CryptoQuant private webinar on January 4, Seyffart mentioned the approval of Ethereum futures ETF in October 2023 and noted that the SEC did not challenge the classification of ETH in the ETF registration process of the Commodity Futures Trading Commission (CFTC). He said:
Seyffart suggests that the SEC may not have invested enough time or willingness to challenge this classification. According to Seyffart, if the SEC determines that ETH is a security, it may face legal lawsuits and have to revoke previously approved futures ETFs.
It is reported that the classification of ETH is crucial because securities and commodity ETFs face different legal requirements, as well as different tax and regulatory burdens related to securities. Seyffart pointed out:
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