Spot Ethereum ETF Unlikely to Secure SEC Approval This Year, Says Morgan Creek CEO
Summary:
Despite the recent approval of Bitcoin's spot ETF, Mark Yusko, CEO of Morgan Creek Capital, believes it's unlikely for a spot Ethereum ETF to receive SEC approval this year. He contrasts the views of Bloomberg ETF analyst, Eric Balchunas, who predicted a 70% chance of a spot Ethereum ETF being approved by May. Yusko also suggests the approval of Bitcoin's spot ETF will drastically decrease BTC's volatility, potentially signaling the maturing of the asset.
Despite the hope ignited by the recent sanctioning of the inaugural spot Bitcoin ETF, the United States Securities and Exchange Commission (SEC) is unlikely to ratify a spot Ethereum ETF this year, surmises Mark Yusko, the CEO and co-founder of Morgan Creek Capital. Contradicting this view, Eric Balchunas, Bloomberg ETF analyst, in a fresh interview predicted a 70% probability of a spot Ethereum ETF getting approved by May. Yusko, however, differs in his opinion, placing the odds at less than half. Although the Bitcoin ETF got its validation recently, Yusko believes the SEC has largely maintained an adversarial stance towards cryptocurrencies, as indicated by the commission's chief, Gary Gensler, on the day of sanctioning. Yusko highlights another potential hurdle - the SEC may continue considering Ether as a security, a title which Bitcoin, being deemed a commodity, does not bear. While discussing Bitcoin, Yusko asserted that a spot ETF's validation will significantly lessen BTC's volatility and, consequently, its theoretical ROI. In Yusko's opinion, investors should embrace this as an indication of the asset's growing maturity. He further clarified about Bitcoin: “Its creation was not intended for day trading; rather, its purpose was to facilitate the exchange of value without requiring permission.” For more insight into the potential enduring effect of the Bitcoin spot ETF approval, watch the complete interview on our YouTube channel and don't forget to hit subscribe!
Published At
1/16/2024 8:00:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.