Ethereum
Saylor Predicts SEC to Designate Ethereum as Security and Deny Spot ETF Applications This Summer
MicroStrategy executive chairman and co-founder Michael Saylor believes the SEC will classify Ethereum as a security this summer and reject related spot ETF applications filed by various asset managers, including BlackRock.
Saylor made the prediction in a social media post. May 2nd during a presentation at the MicroStrategy World 2024 conference. He further predicted that other cryptos “at the bottom of the stack” would also get an unregistered security designation, including BNBSolana (GROUND), XRPand Cardano (ADA).
Saylor said:
“None of them will ever be wrapped by a spot ETF, none of them will ever be accepted by Wall Street…”
Saylor instead claimed that Bitcoin (BTC) is in itself fully accepted by the institutions. He called BTC the “only universal crypto asset” of institutional grade and said “there will be no other.”
The founder of MicroStrategy is well known for his exclusive focus on Bitcoin. Saylor’s statements come days after MicroStrategy said added $1.65 billion of BTC to its corporate holdings in the first quarter and alongside the announcement of its Bitcoin-based decentralized identity (DID) product.
Critical ETH Decisions
Although the market was initially optimistic about the approval of Ethereum spot ETFs, expectations have dropped significantly in recent weeks, with Polymarket estimating the chances of approval at just 11% at press time. Analysts also revised their expectations, going from more than 80% chance of approval to less than 30%.
The critical date for the SEC’s decision is May 23, when it must rule on VanEck’s proposed ETF. The regulator is expected to rule simultaneously on other similar requests.
The SEC may also need to address whether ETH is a security. Blockchain development company Consensys intends to force the SEC to declare that ETH is not a security in a court case. American lawmakers also asked for clarification on the subject in relation to another company, Prometheum.
A clear designation of ETH could provide businesses with a precise way to manage this asset. However, such a designation could also impact whether the SEC approves certain products, such as a spot ETF, and whether companies work with ETH without proper registration.