- Ethereum may be classified as a security by the SEC as per Michael Saylor.
- Instead of flat-out rejecting these petitions, an analyst thinks the SEC will delay their approval.
The U.S Securities and Exchange Commission’s (SEC) judgment on Ethereum ETFs is imminent, and professionals in the field are becoming more skeptical.
Crypto analyst Michaël van de Poppe has voiced his skepticism on the May approval of Ethereum Spot ETFs, taking the lead in the discussion. Michael Saylor, CEO of MicroStrategy, shared his negative outlook on the future of Ethereum ETFs and shares his opinions with others in the industry.
Application Delay Anticipated
This struggle is being led by three of the seven candidates: Hashdex Nasdaq, Ark 21 Shares, and VanEck. Given the SEC’s ongoing investigation into the underlying securities concerns, they are up against a daunting task. Instead of flat-out rejecting these petitions, Van de Poppe thinks the SEC will delay their approval. The emphasis may now be on possible approvals later in the year, depending on this decision.
Michael Saylor predicts that the SEC will take a harder line on cryptocurrencies, especially Ethereum. According to his forecast, Ethereum may be classified as a security by the SEC by the summer of this year. Applications for the Ethereum Spot ETF, both existing and prospective, may find this development problematic. Approval procedures for these ETFs may encounter substantial legal hurdles if Ethereum is classified as a security.
Major cryptocurrencies such as Ethereum, BNB, XRP, Solana (SOL), and Cardano (ADA) might all be impacted by this categorization. More comprehensive regulation may result from the far-reaching effects on the cryptocurrency sector. Companies like BlackRock, who is also vying for an ETF, may experience delays or rejections in the approval process.
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