On Thursday, the US Commodity Futures Trading Commission (CFTC) declared that spot Bitcoin (BTC) and Ether (ETH) products will commence trading for the first time on its registered futures exchanges.
Here are three reasons why this marks a significant development for the leading cryptocurrencies as we approach 2026.
Main points:
CFTC regulation grants BTC and ETH gold-like legitimacy, paving the way for increased institutional investments.
Regulated US trading enhances liquidity, reduces volatility, and encourages crypto trading to return onshore.
Bitcoin and Ethereum can evolve like gold
A strong historical analogy for the CFTC’s decision can be drawn from the gold market.
When gold was officially permitted for trading on regulated US futures exchanges in the 1970s, it transformed from a fragmented, over-the-counter commodity into a globally recognized investment vehicle.
Liquidity became centralized on COMEX, institutions entered the market for the first time, and transparent price discovery formed the backbone for long-term capital inflows.
Since its introduction on COMEX, spot gold prices have surged by 4,000%, illustrating how regulatory clarity can alter an asset’s market trajectory.
The CFTC has now classified Bitcoin and Ethereum under a similar commodity framework, thereby eliminating the US Securities and Exchange Commission’s (SEC) issuer-focused requirements.
This also addressed a long-standing gap: US traders could participate in crypto on platforms like Coinbase and Kraken but lacked the benefits of regulated spot leverage, deep liquidity tools, or exchange-level safeguards.
This gap forced liquidity offshore, with recent 2025 data revealing that Binance captured approximately 41.1% of global spot activity, far ahead of US-based platforms.
With the recent approval of regulated spot markets domestically, Bitcoin and Ethereum now have the same structural foundation that enabled gold to transition from a niche hedge to a widely traded asset class.
CFTC enhances institutional access for BTC, ETH
Pension funds, banks, and hedge funds that were previously hesitant can now approach Bitcoin and Ethereum like other CFTC-recognized commodities, complete with standardized rules, oversight, and custody mandates.
Related: Can Bitcoin truly serve as a store of value? What pension funds are beginning to recognize
86% of institutional investors currently hold or intend to gain crypto exposure, with many increasing their allocations in 2024 as US regulation improved, according to a joint survey conducted by Coinbase and EY-Parthenon in January.
The majority also expressed a preference for accessing crypto via regulated investment channels, such as commodity exchanges or ETFs, rather than through offshore platforms.
With the CFTC decision, institutions can now access Bitcoin and Ethereum via regulated exchanges, audited custody, and overseen pricing, laying the groundwork for stronger, more enduring mainstream adoption.
Bitcoin, Ether may experience improved liquidity growth
Historical evidence shows that commodities tend to grow rapidly after debuting on regulated trading platforms.
An illustrative case is the introduction of WTI oil futures in 1983, where trading exploded from just 3,000 contracts in the initial month to over 100,000 per month in the first year, and eventually to more than 2 million contracts monthly by the late 1980s.
Today, WTI frequently surpasses a million contracts in daily volume, demonstrating how regulatory frameworks can promote immense market growth.
Bitcoin and Ethereum have the potential to experience a similar increase in liquidity, as CFTC-approved spot trading is likely to draw in many more US traders and market makers, thereby enhancing order book depth and lowering spreads.
Greater liquidity and substantial volume on US soil can also mitigate volatility over time, as large buy or sell orders are absorbed more effectively.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we make every effort to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
