SEC’s Ethereum ETF approval confirms its non-security standing: Former CFTC chief

Crypto.information – The SEC’s current approval of ETFs confirms its standing as a non-security, says former CFTC Chairman Brian Quintenz, who’s at the moment a head of coverage of a16z crypto.

On Oct. 2, the monetary market welcomed a complete of 9 ETF merchandise aimed toward monitoring futures contracts linked to Ether, the native foreign money of the Ethereum blockchain.

Out of those 9, 5 ETFs are solely centered on Ether futures, whereas the remaining 4 provide publicity to each (BTC) and Ethereum (ETH) futures contracts.

Grayscale Investments can be exploring the potential for changing its current Ethereum Belief right into a spot Ethereum ETF.

Ethereum ETF approvals counsel altering regulatory winds at SEC

Brian Quintenz, who serves because the Head of Coverage at a16z Crypto and is a former CFTC Commissioner, prompt that the SEC’s approval of an Ethereum ETF could sign a change within the company’s stance, probably shifting away from treating ETH as a safety.

Futures ETFs are backed by futures contracts on the Chicago Mercantile Change, not the bodily asset. Furthermore, the SEC seems comfy with permitting these to commerce. Nonetheless, it nonetheless hasn’t authorised something spot-based for crypto.

Quintenz additionally famous the excessive degree of innovation going down on the Ethereum blockchain, stating that the SEC’s determination “affords a extra outlined route for builders.”

“It’s ridiculous and insulting that it took so lengthy to get right here, however it’s an enormous win for the crypto area, and extra importantly for the way forward for the web. [sic]”

Brian Quintenz, CFTC Chairman and Head of Coverage at a16z Crypto.

Regardless of the optimism, the preliminary buying and selling volumes of those ETFs have been low, and never everyone seems to be satisfied that the SEC’s approval is a bullish indicator.

Tom Dunleavy, CIO of MV Capital, argued that the true game-changer can be the approval of a spot-based ETF.

“Futures ETFs don’t meet the latent demand for spot shopping for, which is facilitated by a spot ETF,” Dunleavy famous.

On the time of writing, Ethereum is buying and selling at $1,638, down 1.12% within the final 24 hours and round 65% off its all-time excessive of $4,878 almost two years in the past.

This text was initially revealed on Crypto.information