Scott Johnsson, partner of Van Buren Capital, reiterated that the US SEC may determine that ETH is a security and reject the ETF application. According to the content of the documents disclosed by the SEC, the US SEC intends to use the "commodity-based trust shares" rule to define ETH as a security. The main reasons are:
(1) Issued by a trust that holds (a) specified commodities deposited in a trust, or (b) specified commodities and cash other than the specified commodities;
(2) 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, it 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)