The U.S. Securities and Exchange Commission (SEC) Spot Ethereum ETFOn Thursday, there were signs that Ethereum would begin trading on Wall Street, with Coinbase CLO Paul Grewal asserting that the SEC's decision validates Ethereum's status as a commodity.
Coinbase CLO: SEC approves Ethereum ETF, ETH recognized as a product
Paul Grewal Grewal spoke out online, emphasizing the importance of recognition. He said Ethereum is now effectively recognized as a commodity, a belief that has long been held by the crypto community. Grewal's opinion was echoed by Siegel, who emphasized that Ethereum's decentralized nature classifies it as a commodity. This recognition is supported by the Commodity Futures Trading Commission (CFTC).CFTC) and federal court rulings. The SEC’s approval of an Ethereum ETF further strengthens this position.
Both Grewal and Segel pointed to historical evidence and regulatory action that has treated Ethereum as a commodity. They cited the CFTC's regulation of ETH futures and public statements from Commission officials. This consistent treatment across a range of contexts, culminating in the approval of a spot Ethereum ETF, reinforces Ethereum's status as a commodity.
SEC Approval Increases Institutional Investment in Ethereum
The approved funds include the Convertible Grayscale Ethereum Trust, Bitwise Ethereum ETF, iShares Ethereum Trust, and VanEck Ethereum Trust. ARK/21 stocks Ethereum ETF, Invesco Galaxy Ethereum ETF, Fidelity Ethereum Fund, Franklin Ethereum ETF. Approval is a major milestone, but trading won't begin until some time later. Bloomberg ETF expert James Seifert suggested it could be several weeks before the fund manager's S-1 document is approved and trading begins.
The approval of these funds is EthereumThis paves the way for greater investment from institutional investors, who must wait for final approval of the S-1 documents before trading can begin, a process that is essential to ensure compliance with regulatory standards and a smooth launch of these ETFs.
The SEC's decision to approve a spot Ethereum ETF indicates that Ethereum is not considered a security; if it were, a separate approval process would be required. This approval is a major win for cryptocurrency advocates and highlights Ethereum's important role in the industry. The Ethereum network supports many prominent projects and services, so this recognition is crucial for its continued growth.
Interestingly, several ETH ETF issuers amended their filings this week to remove language about staking customers' ETH. Since Ethereum moved to a proof-of-stake system in September 2022, ETH holders have been able to earn rewards by staking their funds. The SEC has previously considered staking services offered by financial intermediaries to be unregistered securities schemes. By removing the reference to staking, ETF issuers are aiming to avoid regulatory hurdles and speed up the approval process.
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