According to a report by Cointelegraph, Bloomberg ETF analyst James Seyffart stated that the US Securities and Exchange Commission (SEC) tacitly recognized Ethereum (ETH) as a commodity when it approved Ethereum futures ETF last year, indicating that spot-based ETFs may be launched this year.
During a CryptoQuant private webinar on January 4th, Seyffart mentioned the approval of Ethereum futures ETF in October 2023 and pointed out that the SEC did not challenge the classification of ETH in the ETF registration process with the Commodity Futures Trading Commission (CFTC). He said:
Seyffart suggested that the SEC may not have devoted enough time or willingness to challenge this classification. According to Seyffart, if the SEC were to classify ETH as a security, it could face legal challenges and have to revoke previously approved futures ETFs.
Reportedly, the classification of ETH is crucial as securities and commodity ETFs are subject to different legal requirements, as well as different tax and regulatory burdens related to securities. Seyffart pointed out: