Michael Saylor predicts that the US Securities and Exchange Commission (SEC) will categorize Ethereum as a security during the upcoming summer and consequently reject all spot Ethereum ETF applications. He also anticipates similar security designations for other major cryptocurrencies like Binance Coin (BNB), Solana (SOL), Ripple (XRP), and Cardano (ADA) by the SEC.
During today’s presentation at the MicroStrategy World 2024 conference, Saylor stated, “Ethereum will be classified as a crypto asset security, not a commodity. Following this, Ethereum, BNB, Solana, Ripple, Cardano, and all subsequent crypto assets will likely be considered unregistered crypto asset securities.”
He further added, “None of these assets will be included in spot ETFs, embraced by Wall Street, or accepted by mainstream institutional investors as crypto assets.”
In contrast, Saylor emphasized Bitcoin’s unique status as the only crypto asset fully embraced by institutions, describing it as the “singular universal” institutional-grade crypto asset without rivals.
Saylor’s remarks followed MicroStrategy’s introduction of MicroStrategy Orange, a Bitcoin-based decentralized identity solution, and the company’s announcement of acquiring 122 BTC last month.
Saylor isn’t alone in his skepticism about the near-term approval of spot Ethereum ETFs. Justin Sun, founder of the TRON Foundation, has also expressed doubts about the regulatory hurdles facing Ethereum ETFs.
The SEC is scheduled to make decisions on filings by VanEck and ARK on May 23 and May 24, respectively. Recent discussions regarding the SEC’s approval process for spot Bitcoin funds have been notably limited compared to previous discussions, with SEC staff reportedly not engaging in detailed conversations about the proposed Ethereum ETFs.
This lack of dialogue increases frustration and raises the likelihood of either rejection or postponement of decisions.
A definitive classification for Ethereum could provide clarity on how companies engage with the asset and influence the SEC’s approval of products like spot ETFs and companies’ willingness to interact with Ethereum.
However, not everyone shares this skepticism. BlackRock CEO Larry Fink suggested on the Fox Business show “The Claman Countdown” that a spot Ethereum ETF could still be feasible even if the SEC deems ETH a security.
