You're delusional to think Ethereum (ETH) is a commodity

Is Ethereum (ETH) a commodity? Definitely NOT!

We got the approval of spot Ethereum ETFs and now everyone is telling you that Ethereum must be a commodity.

Because that was the argument with spot Bitcoin ETFs.

Since the SEC approved the spot ETF listing, Bitcoin is definitely not security so it must be a commodity.

That couldn’t be more wrong! Ethereum is definitely NOT a commodity.

If Ethereum were a commodity, it would be the first commodity in human history to have:

1. Public and private sale of tokens,

2. Foundation with pre-mined tokens (as well as many core devs),

3. Business development roadmap and planning,

4. Ethereum core devs leading all the changes in the protocol,

5. VCs and investors who are supporting the “ecosystem”.

In 2013, Vitalik secured a multi-million dollar investment from Fenbushi Capital and for the next year, the team spent traveling around the world and marketing their new blockchain.

In 2014, Ethereum did its ICO via the Swiss Foundation model (the Swiss foundation issues the crypto-currency and does fundraising).

Obviously, Ethereum is not a commodity, and no commodity ever had any of what I wrote above.

You could argue that Ethereum has a commodity property when it is used for paying the gas fee.

However, the Proof-of-Stake hard fork added security-like properties to Ethereum:

1. staking = voting power,

2. yield = dividend payment (paid from transaction fees),

3. burning = buybacks (tokens are bought and burn from TX fees once again).

The question of whether Ethereum is a commodity or security has very little practical meaning outside of US regulation.

There's nothing similar to Howey Test for securities, to tell if something is a commodity from a (US) legal standpoint.

Something becomes a commodity when the CFTC says so.

You can argue that Ethereum “was a security” back in its early years.

But later on, Ethereum "sufficiently decentralized" itself away from being a "common enterprise", and hence is not a security - as per SEC’s William Hinman.

Ethereum is a payment & utility token, I think it’s not a security but it’s 💯 % NOT a commodity.