The US Securities and Exchange Commission has yet to decide on spot Ethereum exchange-traded funds. On May 16, Billy Markus, co-founder of Dogecoin, expressed his doubts about their approval, suggesting that the SEC is “compromised” and may reject the ETFs.
Markus made his skeptical comment in response to a social media post discussing the importance of spot Ether ETFs for the ecosystem and the potential impact of a negative decision on Ethereum. He tweeted, “nothing good will come out” of the spot ETH ETF application.
Markus’ comment reflects a broader pessimism about the SEC’s ability to make fair and unbiased decisions regarding Ethereum and cryptocurrency. Despite his skepticism, he believes the regulator’s decision on spot Ether ETFs won’t negatively impact Ethereum’s trajectory or the cryptocurrency market as a whole. This sentiment echoes the prevalent skepticism surrounding spot Ethereum ETFs.
Recently, finance lawyer Scott Johnsson suggested that Ethereum’s legal classification will play a crucial role in the upcoming ETF decisions, highlighting a key distinction in the SEC’s approach to Bitcoin and Ethereum. While Bitcoin’s security status wasn’t a major focus during spot ETF filings, Ethereum’s classification is receiving more regulatory scrutiny, indicating a shift in focus for digital assets.
The upcoming decision dates for VanEck and ARK Invest’s applications for Ethereum ETFs, scheduled for May 23 and May 24, respectively, have sparked intense speculation within the crypto industry. The potential approval of Ethereum ETFs carries symbolic importance, solidifying crypto’s legitimacy as an asset class and reaffirming its role in the evolving financial industry.
The SEC’s recognition of Ethereum’s non-security status, demonstrated by the approval of an Ethereum futures ETF for trading in October 2023, established a clear precedent for the approval of a spot Ethereum ETF. Experts believe any deviation from this path would create regulatory uncertainty and weaken market confidence.
Hong Kong’s approval of spot Bitcoin and Ethereum ETFs, as well as their trading, underscores the increasing global acceptance and recognition of the potential of Ethereum-based financial instruments.
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