Analysis: US SEC may reject ETF application on the grounds that ETH is a security

Odaily News Scott Johnsson, partner of Van Buren Capital, discovered an overlooked detail in a March filing on Tuesday, re-proposing that the U.S. SEC may determine that ETH is a security and reject the ETF application. According to the document, the rule defines "commodity-based trust shares" as a security that "(1) is issued by a trust that holds (a) a specified commodity deposited in a trust, or (b) a specified commodity and cash other than the specified commodity; (2) is issued by the trust in batches of a specific minimum quantity in exchange for a certain amount of underlying commodities and/or cash; (3) when aggregated in the same specific minimum quantity, can be redeemed by the trust at the request of the holder, and the trust will deliver the corresponding amount of underlying commodities and/or cash to the redeeming holder." (TheBlock)