The possibility of an ether-backed ETF is generating excitement in the crypto industry, but the SEC's decision on whether ether is a security remains uncertain. If ether is deemed a security, it could impact the status of thousands of cryptocurrencies and require ETF issuers to treat it as such. Despite resistance from the industry, some issuers may break ranks depending on the SEC's decision. The decentralized structure of the Ethereum network and its governance have evolved over time, leading some to argue that ether is not a security, but the potential profits for the issuer of the first spot ether ETF could be substantial. However, approval of an ether ETF under the 1940 Act could create significant havoc for the greater crypto industry, particularly in the ether spot market, as many exchanges are not authorized to trade securities.