According to Michael Saylor, Ethereum could potentially be classified as a security by the Securities and Exchange Commission (SEC). Instead of outright rejecting the petitions for Ethereum ETFs, analysts believe that the SEC may choose to delay their approval. This has led to increased skepticism among professionals in the field.
Leading the discussion on the issue, crypto analyst Michaël van de Poppe has expressed doubt about the approval of Ethereum Spot ETFs in May. Michael Saylor, the CEO of MicroStrategy, has also shared his negative outlook on the future of Ethereum ETFs, echoing the sentiments of others in the industry.
Three of the seven candidates involved in the struggle for ETF approval, namely Hashdex Nasdaq, Ark 21 Shares, and VanEck, are facing a daunting task due to the SEC’s ongoing investigation into securities concerns. Instead of outright rejection, Van de Poppe believes that the SEC will opt for a delay in approval. The focus now shifts to possible approvals later in the year, depending on the SEC’s decision.
Saylor predicts that the SEC will adopt a stricter stance on cryptocurrencies, particularly Ethereum. He forecasts that Ethereum may be classified as a security by the summer of this year. This development poses challenges for both existing and prospective applications for the Ethereum Spot ETF, as they may encounter significant legal hurdles if Ethereum is indeed classified as a security.
The categorization of major cryptocurrencies such as Ethereum, BNB, XRP, Solana (SOL), and Cardano (ADA) as securities could have far-reaching effects on the cryptocurrency sector. It may lead to more comprehensive regulation and potentially cause delays or rejections in the approval process for ETFs, even for companies like BlackRock who are also pursuing an ETF.
In other crypto news today, Dogecoin has outperformed major altcoins amidst surging whale activity and wallet growth.