Ethereum
Microstrategy’s Saylor slams Ethereum with ‘security’ label as SEC review delays ETF launch
Michael Saylor, executive chairman of MicroStrategydo bold statements regarding Ethereum, categorizing it as a crypto asset security rather than a commodity.
Saylor’s views extended beyond Ethereum, as he expressed doubts about several altcoins, including BNB, Solana, XRP and Cardano, suggesting they may struggle to gain approval from a US SEC spot ETF. He emphasized that Bitcoin was the “singular and universal” choice for institutional investments, predicting limited institutional acceptance for other cryptocurrencies.
Needless to say, these controversial statements have ruffled a few feathers! Read on to find out more.
Saylor’s Bitcoin bias: Ethereum under fire
Saylor’s position, particularly regarding Ethereum, sparked a debate. He highlighted MicroStrategy’s strong support for Bitcoin, demonstrated by its recent addition of $1.65 billion worth of BTC to its corporate reserves in the first quarter. In addition, MicroStrategy the development of Bitcoin-based products like the MicroStrategy Orange decentralized identity (DID) product has solidified its allegiance to the Bitcoin ecosystem.
Wall Street is going through a difficult time
While financial giants like BlackRock and Fidelity have expressed interest in an Ethereum ETF, regulatory concerns remain significant. Complicating matters is the SEC’s ongoing investigation into the security state of Ethereum. ConsenSys made the problem worse by suing the SEC to reclassify Ethereum.
Regulatory uncertainties and legal battles pose significant obstacles to the launch of spot Ethereum ETFs.
Spot Ethereum ETFs are in play
Spot Ethereum ETFs could provide Wall Street firms and investors with indirect exposure to ETH, offering an alternative to crypto exchanges or managing digital wallets. Despite Hong Kong’s recent approval of a spot Ethereum ETF, the fate of these products in the United States depends on regulatory clarity from the SEC.
Bloomberg analyst James Seyffart believes that an Ethereum ETF is unlikely in 2024 but could be possible in 2025. Given the lack of positive signs, an SEC approval of ETH spot ETFs in May seems unlikely.
Ethereum Price Analysis
The price of Ethereum has been fluctuating, hovering around $3,000 after recently dropping to $2,816. Although market fluctuations have generated uncertainty, analysts are optimistic that ETH will not stay below the $2,852 to $3,300 range for long.
Will Ethereum ever overcome the security hurdle and see a spot ETF? Only time will tell.
Also discover: What’s Next for Bitcoin (BTC) and Ethereum (ETH) Prices?