Experts: Approval of ETH exchange-traded funds is an “implicit admission” by the SEC that Ethereum cannot be considered a security

The American regulator gave its approval based on applications from 8 issuers of ETFs based on the second largest cryptocurrency by capitalization. The launch of trading of the new product is expected after the SEC approves registration filings on Form S-1.

Against the backdrop of this news, the price of Ethereum rose to $3,900, but then began to decline. Market participants expressed optimistic but cautious opinions about what was happening.

“TO BE CLEAR: This does not mean they will begin trading tomorrow. This is just 19b-4 approval. Also needs to be an approval on the S-1 documents which is going to take time. We’re expecting it to take a couple weeks but could take longer. Should know more within a week or so!” said Bloomberg analyst James Seyffarth.

VanEck’s head of digital asset research, Matthew Siegel, is confident of a positive outlook for industry participants.

“We expect this improved political backdrop will lead to further victories via new laws and in the courts that draw investment to Bitcoin, Ethereum and other open-source blockchain software.” the expert said.

Bitwise called the news of the Ether-based spot ETF a “It’s a historic move that puts the spotlight on the second-largest crypto asset,.”

Analysts in the digital asset industry believe that the approval of ETH exchange-traded funds is an “implicit admission” by the SEC that ether cannot be considered a security.

“These are commodity-based trust shares, so the SEC, in approving them, explicitly states that it does not intend to apply the definition of a security to ETH,” James Seyffarth clarified.

Crypto asset lawyer Justin Browder opined that if ETH-ETFs receive final approval, “the debate will end — ether is not a security.”

Do you share the optimism of market participants about this?