Michael Saylor Doubts Ethereum ETF Approval in U.S.

Michael Saylor doubts the launch of Ethereum-based exchange-traded funds in the U.S. this year, with other countries moving ahead. The journey to approval for ETFs based on Ethereum’s spot price mirrors Bitcoin’s path.

The U.S. Securities and Exchange Commission is delaying responses to applications from Grayscale, Franklin Templeton, Fidelity, BlackRock, VanEck, and ARK Invest. The SEC’s hesitation may be due to concerns that Ether is a security rather than a commodity like Bitcoin.

In June 2023, SEC chair Gary Gensler’s ambiguous stance on ETH’s security status raised concerns in the crypto industry. Ether’s classification could impact regulatory oversight in the U.S. and affect other altcoins.

Michael Saylor, an advocate for Bitcoin, predicts that ETFs based on ETH may never materialize. He believes that Ethereum’s security status will prevent mainstream institutional investors from accepting it.

While the U.S. struggles with regulatory uncertainty, other countries like Hong Kong have launched ETH ETFs. Funds based on Ether’s spot price have been approved in several countries, offering additional yield through staking returns.

With billions of dollars in assets under management in ETFs from other territories, the U.S. risks falling behind in the cryptocurrency market.