Michael Saylor Took a Jab at Ethereum, Labelling It A Security, Rejects Spot ETF

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Michael Saylor, the executive chairman of MicroStrategy, made bold statements regarding Ethereum, categorizing it as a crypto asset security rather than a commodity.

Speaking at the MicroStrategy World 2024 conference, Saylor asserted that Ethereum and other altcoins, including BNB, Solana, XRP, and Cardano, will unlikely receive approval for a spot ETF from the US SEC.

He categorized the king crypto, Bitcoin, as the “singular universal” crypto asset suitable for institutional investments and predicted that no other cryptocurrency would achieve similar institutional acceptance.

#Bitcoin – There is No Second Best pic.twitter.com/PLDgwGwF9J

— Michael Saylor (@saylor) May 2, 2024

Saylor’s Bitcoin Bias: Ethereum Under Fire

Saylor’s remarks were harsh, especially for the second-biggest cryptocurrency, ETH. They reflect his unwavering focus on Bitcoin, exemplified by MicroStrategy’s recent announcement of adding $1.65 billion worth of BTC to its corporate reserves in the first quarter.

MicroStrategy has also launched Bitcoin-based products, such as the MicroStrategy Orange decentralized identity (DID) product, further reinforcing its commitment to the Bitcoin ecosystem.

While financial giants like BlackRock and Fidelity have advocated for a spot in Ethereum ETF, concerns persist. They are cautious about spotting Ethereum ETFs as the SEC investigates Ethereum’s status as a security.

Despite advocacy from financial giants like BlackRock and Fidelity, concerns persist. ConsenSys has even sued the SEC to classify Ethereum as a non-security. Regulatory uncertainties, obstacles, and legal battles could hinder the launch of spot Ethereum ETFs.

Spot Ethereum ETFs Hang in the Balance

If approved Spot Ethereum ETFs would offer Wall Street firms and investors indirect exposure to ETH, providing an alternative to navigating crypto exchanges or managing digital wallets. Despite Hong Kong’s recent approval of a spot Ethereum ETF, the future of such products in the United States remains uncertain, pending regulatory clarity from the SEC. 

According to Bloomberg analyst James Seyffart, Ethereum ETF is unlikely in 2024 but possible in 2025. Since there have been no good indicators, an SEC approval of spot ETH ETFs in May is doubtful.

Ethereum is trading near $3,000 after falling to $2,816 on Wednesday. Recent market swings have driven many gloom, but ETH may not stay below $2,852 to $3,300.