Saylor predicts SEC will designate Ethereum as a security and deny spot ETF applications this summer

Michael Saylor, executive chairman and co-founder of MicroStrategy, 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 this prediction in a social media post. May 2 During a presentation at the MicroStrategy World 2024 conference. He further predicted that other cryptocurrencies “below the stack” such as BNB, Solana (SOL), XRP, and Cardano (ADA) will also receive the unregistered security designation.

Sailor said:

“None of them will ever be wrapped up in a spot ETF and none of them will be accepted by Wall Street…”

Saylor instead argued that only Bitcoin (BTC) has full institutional acceptance. He called BTC the “one universal” institutional crypto asset and said, “There will never be another.”

The founders of MicroStrategy are well known for their focus on Bitcoin. Saylor’s statement comes days after MicroStrategy announced it added $1.65 billion in BTC to its corporate holdings in the first quarter, alongside the announcement of a Bitcoin-based decentralized identity (DID) product. It was conducted.

Important decisions regarding ETH

The market was initially optimistic about the approval of the Spot Ethereum ETF, but expectations have dropped dramatically in recent weeks, with Polymarket pegging the probability of approval at just 11% at the time of writing. Analysts similarly revised their expectations for approval from more than 80% to less than 30%.

The key date for the SEC’s decision is May 23, at which point the SEC must decide on VanEck’s proposed ETF. Regulators are expected to decide on other similar applications at the same time.

The SEC may also need to state whether ETH is a security. Blockchain developer ConsenSys intends to force the SEC to state in its lawsuit that ETH is not a security. US lawmakers are also seeking clarification on the issue in relation to another company, Promethium.

Clear designation of ETH could give companies a clear way to handle the asset. However, such designations could also impact whether the SEC approves certain products, such as spot ETFs, and whether companies handle ETH without proper registration.

The post Saylor predicts the SEC will designate Ethereum as a security and reject spot ETF applications this summer appeared first on CryptoSlate.

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