SEC Could Deny Ether ETF Approvals, Predicts MicroStrategy Chairman
Summary:
In a recent conference, MicroStrategy's Chairman, Michael Saylor forecasted that the US Securities and Exchange Commission (SEC) may deny the listing and trading of Ether (ETH) spot exchange-traded funds (ETFs), possibly categorizing it as a crypto asset security rather than a commodity. His comments came in light of the approaching deadlines for ETF applications from VanEck and ARK Invest. Concurrently, Saylor intimated that similar treatment might extend to other tokens such as BNB, Solana (SOL), XRP, and Cardano (ADA). Finally, he noted that MicroStrategy currently holds 214,400 Bitcoin (BTC), worth over $13 billion.
The Chairman of MicroStrategy, Michael Saylor, has projected that the U.S. Securities and Exchange Commission (SEC) would reject any proposals for the listing and trading of Ether (ETH) spot exchange-traded funds (ETFs). During MicroStrategy's Bitcoin For Corporations event on 1st May, Saylor suggested that the SEC would categorize ETH not as a commodity to be regulated by the U.S. Commodity Futures Trading Commission (CFTC), but as a crypto asset security falling under its own jurisdiction. He speculated that this treatment could also be applied to tokens such as BNB, Solana (SOL), XRP, and Cardano (ADA), labeling them as unregistered crypto asset securities. Saylor stated, “None of them will ever be encapsulated in a spot ETF, none of them will gain approval from Wall Street, none of them will receive acceptance from mainstream institutional investors as crypto assets.”
Saylor’s comments coincide with growing apprehension over whether the SEC will greenlight the listing and trading of Ether ETFs on American exchanges. Notably, the initial major deadlines for ETF applications submitted by VanEck and ARK Invest are due on May 23 and May 24, respectively.
Relevant to this, sections of an undisclosed lawsuit filed by Consensys suggest that the SEC initiated an inquiry into whether Ether was a security as far back as March 2023. In a hearing in April 2023, SEC Chair Gary Gensler sidestepped straightforward inquiries about the classification of Ether, contrasting his earlier assertions on the topic.
Saylor, a vocal supporter of Bitcoin (BTC), has been instrumental in MicroStrategy's strategy to amass BTC as a reserve asset. In line with this, by April 30, it was revealed that the company owned 214,400 BTC, valued in excess of $13 billion at the time of reporting.
Published At
5/3/2024 8:48:49 PM
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