Hey, it’s Marc. ✌️

Here's what happened today:

• The SEC approved the spot Ether ETF.

• Ahead of the SEC’s decision, Erich Balchunas, a Bloomberg analyst, raised the odds on spot ETH ETF approval to 75%, giving the markets a pump.

• Gold ETF have a $200B market cap, BTC ETF $40B. What is it going to be for ETH?

Why It’s Important

This is a massive step towards legitimizing crypto among institutional investors.

Even bigger: It could classify ETH as a commodity, NOT a security. 💡

Here's why:

• Ethereum ETFs are being approved as "commodity-based trust shares" (CBTS).

• A CBTS is a type of security issued by a trust that holds a specific commodity.

• This regulatory classification distinguishes these ETFs from traditional ETFs over securities.

ETH as a commodity unlocks engineering of different financial products. 💰

This is monumental, but not for the reasons you think.

As Maja Vujinovic, investor and early crypto & payment pioneer, says:

There’s a Catch

The SEC still needs to approve issuer filings (S-1s) prior to launch.

Delaying this approval could delay the official launch by several weeks – or months

Also, a commissioner can challenge the vote in next 10 days.

This means the launch could be further delayed or even blocked if the challenge is successful.

What they’re saying: The inflow is expected to be significantly lower in comparison to Bitcoin ETF.

"Maybe you'll see 20% to one-third of the investment volume that flew to Bitcoin" – Alexander S. Blume

Meanwhile: The US House of Representatives today passed the FIT21 Act, setting the stage for US crypto regulation to finally take shape.

"This is a sign for the Biden administration that "anti-crypto" is a losing platform this year" – Jake Chervinsky

Be smart: Entities like Coinbase or Blackrock can now accumulate large amounts of ETH, giving them significant influence over the network's governance and decision-making processes.

This isn’t possible with Bitcoin because it runs on proof-of-work (PoF).

The Big Picture

Ether ETF approval is a game-changer irrespective of the flow:

• It offers a regulated, mainstream investment vehicle that directly holds Ethereum

• It will boost Ethereum liquidity and enhance credibility in traditional finance (TradeFi)

• It could classify ETH as a commodity

Could Coinbase or Blackrock control the protocol in the future?

That’s all for now, folks.

Tomorrow you’ll receive the regular Weekly Field Notes.

Talk soon,

Marc

PS: Follow me on LinkedIn and X for shorter insights.

🔵 Get a 50% welcome discount on your PRO subscription—available for a limited time only!

A PRO subscription gets you:

• Weekly Field Notes

• 2x/month case studies & data-driven industry analysis

• Private community with exclusive content, virtual events, AMA’s with special guests & access to Marc

• Access to top cheatsheets, lists & full archive

Partner with us

⚡️ Amplify Your Growth

Together with our global network of technology and execution partners, we accelerate start-ups and consumer brands to unlock next-gen consumer growth across Web3 and emerging technologies.

We’re also to offer our partners exposure to thousands of b2b Web3 industry leaders & access to the FiftyOne network to grow your business.

For advertisements: Get in touch today | For partnerships: Reply to this email.