Bloomberg analyst: Ethereum ETF may be launched in 2024

Author: Ana Paula Pereira, Cointelegraph; Compiler: Songxue, Golden Finance

According to Bloomberg ETF analyst James Seyffart, when the U.S. Securities and Exchange Commission approved the ETH futures exchange-traded fund (ETF) last year, The implicit acceptance of Ethereum as a commodity means a spot ETF variant may be launched this year.

In a private webinar hosted by CryptoQuant on January 4, Seyffart mentioned the approval of ether futures trading funds (ETFs) in October 2023, noting that the SEC is working with commodity futures trading The Commission (CFTC) did not raise any objection to the classification of the currency during the ETF registration process.

“The CFTC blatantly calls Ethereum a commodity. They don’t call it a security. [...] SEC has approved an Ethereum futures ETF. So, Gary Gensler will not explicitly state whether Ethereum is a security or a commodity, but in their actions, by approving these Ethereum futures ETFs, they are implicitly accepting these Ethereum futures as commodity futures.”

Seyffart said the SEC may not have sufficient resources to argue the classification.

The first ether futures trading funds (ETFs) in the United States began to be listed on the Chicago Board Options Exchange on October 2, and many investment companies including ProShares, VanEck, Bitwise, Valkyrie, Kelly and Volshares launched Nine funds in total. According to Seyffart, if the SEC determines that ether is a security, it could find itself in court and have to delist futures ETFs from exchanges.

The importance of this classification is that securities and commodity exchange-traded funds (ETFs) face different legal requirements and have different regulations and tax burdens related to securities.

“This is not just a confrontation between the SEC and the crypto industry. If they treat Ethereum as a security, it will be a confrontation against their sister regulator, the CFTC.[. ..]This is why I think we may see a potential Ethereum ETF approved this year,” the analyst noted.

The SEC recently lost a court case involving a similar dispute.

The SEC’s final decision deadline for VanEck, ARK 21Shares and Hashdex’s spot Ethereum ETF is May 2024, with other decision deadlines coming in the following months.

But before that happens, regulators must disclose their ruling on spot Bitcoin ETFs. Seyfartt expects approval on Jan. 10.