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MicroStrategy CEO and co-founder Michael Saylor believes the SEC will classify ethereum as a security this summer and reject related spot ETF applications filed by several asset managers, including BlackRock.
Saylor made the prediction in a social media post on twitter.com/saylor/status/1786128074138140956″>May 2 during a presentation at the MicroStrategy World 2024 conference. He further predicted that other cryptocurrencies “in the stack” will also get an unregistered security designation, including BNB, Solana (SOL), XRP, and Cardano (ADA).
Saylor said:
“None of them will ever be included in a spot ETF, none of them will ever be accepted by Wall Street…”
Saylor, on the other hand, stated that bitcoin (btc) alone has full institutional acceptance. He called btc the “single universal” institutional-grade crypto asset and said “there won’t be another.”
The founder of MicroStrategy is known for his exclusive focus on bitcoin. Saylor's remarks come days after MicroStrategy said it added $1.65 billion in btc to its corporate holdings in the first quarter and alongside the announcement of its bitcoin-based decentralized identity (DID) product.
Critical eth Decisions
Although the market was initially optimistic about the approval of ethereum spot ETFs, expectations have fallen sharply in recent weeks, with Polymarket putting the approval odds at a meager 11% as of press time. Analysts also revised their expectations from a more than 80% chance of approval to less than 30%.
The critical date for the SEC's decision is May 23, at which time it must decide on VanEck's proposed ETF. The regulator is expected to decide on other similar applications simultaneously.
The SEC may also need to declare whether eth is a security. Blockchain development company Consensys intends to force the SEC to declare that eth is not a security in a legal case. US lawmakers have also asked for clarity on the matter regarding another company, Prometheum.
A clear designation for eth could provide companies with a definitive way to manage the asset. However, such a designation could also affect whether the SEC approves certain products, such as a spot ETF, and whether companies work with eth without proper registration.
The post Saylor Predicts SEC Will Designate ethereum as a Security and Deny Spot ETF Applications This Summer appeared first on CryptoSlate.
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