US SEC’s Ethereum ETF Approval Officially Confirms Its Non-Security Status, Says Former CFTC Chairman

Photo of author

By BitcoinWiki News

Key Takeaways:

  • The recent approval of Ethereum exchange-traded funds (ETFs) by the SEC establishes Ethereum’s status as a non-security
  • Nine ETF products designed to track Ethereum’s native currency, Ether, were introduced
  • Five ETFs exclusively hold Ether futures and four track a combination of Bitcoin and Ethereum futures contracts
  • Grayscale is looking to convert its Ethereum Trust into a spot Ethereum ETF
  • Valkyrie’s BTF, which tracks a combination of Bitcoin and Ether, had a total trading volume of $882,000 on its first day
  • Comparatively, the ProShares Bitcoin Strategy ETF saw over $1 billion in trading volume on its first day
  • Though Ether ETFs’ trading volume may seem modest, it is substantial compared to traditional finance ETF launches
  • Investors generally prefer spot ETF products over those based on futures contracts
  • All the ETF products were launched on the same day to prevent any single fund from gaining market dominance
  • Volatility Shares canceled its plans to list a similar Ethereum futures ETF
  • The approval of Ethereum ETFs signifies a significant regulatory development in the crypto space
  • Former CFTC chairman sees it as a big win for the future of the internet

The recent approval of Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) confirms Ethereum’s status as a non-security, according to former CFTC Chairman Brian Quintenz. Nine ETFs were introduced to the market on October 2, with five exclusively holding Ether futures and four tracking a combination of Bitcoin and Ethereum futures. Grayscale is also looking to convert its Ethereum Trust into a spot Ethereum ETF. However, the trading volume for these Ether ETFs on the first day was less than $2 million, compared to over $1 billion for the ProShares Bitcoin Strategy ETF in October 2021. Bloomberg ETF analyst Eric Balchunas said the Ether ETFs’ trading volume is substantial when compared to traditional finance ETF launches, but investors generally prefer spot ETF products over those based on futures contracts. Volatility Shares recently canceled its plans to list an ETH futures ETF due to a lack of opportunities in the current market environment. Overall, the approval of Ethereum ETFs is seen as a significant regulatory development for the cryptocurrency market.

This is sponsored by: Learn Bitcoin Option

Leave a Comment