TL; DR
Full story
The big dawgs have been talking about whether or not to approve an Ethereum ETF, which has reiterated two long-held conversations in the Web3 space…
Conversation 1: Is Ethereum Even a Commodity?
Raw materials tend to have less stringent regulations (and are more likely packaged as ETFs). effects are closely monitored by the SEC.
Raw materials = ‘immutable things’ such as wheat or gold.
Effects = ‘changeable’ things, like shares in Apple.
For example: What if Tim Cook changed Apple’s business model tomorrow and started selling handmade jewelry on Etsy?
It is because of this potential for change that securities are more heavily regulated. Now – the SEC hasn’t done that formal has responded to this debate, but there are OG references that point to that SEC Chairman Gary Gensler sees ETH as a commodity.
(Deep in his secret, degenerate heart <3).
Conversation 2: Do people even want an ETH ETF?
The argument for an ETH ETF goes something like this:
More investments = a higher Ethereum price.
(Which = anyone who can afford that life-size wax figure Stone Cold Steve Austin cracking a beer they wanted for their home office).
No? OK. You’re the weird one, not us.
The argument in return for an ETH ETF goes something like this:
If you own Ethereum, you can suggest updates, changes, and improvements to the network. Putting a whole bunch of Ethereum in the hands of a select few financial companies puts the network at risk of centralized control.
But the thing is, none of this really matters RE: ETH ETF approval!
Because the SEC has already backed itself into a corner by approving Ethereum futures trading in the US.
(Futures = a way to bet on the future price of ETH through the stock market).
☝️ And that’s exactly how/why they were forced to approve a Bitcoin ETF.