CNBC’s Fast Money trader and regular crypto commentator Brian Kelly has said Ethereum being a commodity is a “huge” win for the market and brushed off the setback on BTC exchange-traded funds (ETFs).

While the U.S. Securities and Exchange Commission (SEC) put a damper on the crypto markets earlier in the week by denying the latest round of bitcoin ETF proposals, Kelly says that he is less concerned about the development. The veteran investor highlighted the entrance of large brokerages into the crypto markets as filling the need for ETFs, 

The problem the SEC has is a huge portion of bitcoin trading is outside of the US. The concern is they don’t have a view into those markets. That being said there’s been some developments. You have companies like Fidelity and TD Ameritrade starting to push into this space.

He continued, 

So ultimately you’re going to be able to buy bitcoin in a regular brokerage account, or it’s going to look like a regular brokerage account. So I’m less concerned that you need a bitcoin ETF at this point in time.

In comparison to news of the SEC denying bitcoin ETFs, Kelly was bullish on the CFTC determining Ethereum and smart contracts to be a commodity. 

According to Kelly, such a classification will pave the way for institutional investors, 

The SEC saying Ethereum is a commodity is huge for this space. It gives us regulatory clarity. The CFTC has now said, ‘Listen, if you’re buying bitcoin on these smart contract platforms they are commodities. That opens the door for institutions to come in.

Kelly explained that his conversations with institutions has centered around the potential of bitcoin and crypto eventually being banned as an asset. However, the CFTC’s decision to label ethereum as a commodity now alleviates that concern. 

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