Michael Saylor Attacks Ethereum Calling It A Security, Disapproves spot ETF

MicroStrategy executive chairman Michael Saylor has made a bold statement against Ethereum stating that the world’s largest altcoin is a crypto asset security and not a commodity. His comments regarding ETH came on Thursday, May 2, while speaking at the MicroStrategy World 2024 conference.

Michael Saylor Attacks ETH

In addition to attacking Ethereum and calling it a security, Michael Saylor added that there’s a very high likelihood that the U.S. Securities and Exchange Commission (SEC) would never approve a spot Ethereum ETF. His comments come just 20 days ahead of the final deadline of May 23, for the SEC to either approve/deny the spot Ethereum ETf applications.

He went on to forecast that other cryptocurrencies further down the hierarchy would also be classified as unregistered securities, including BNB, Solana (SOL), XRP, and Cardano (ADA).

Saylor emphasized:

“None of them will be included in a spot ETF, none of them will ever gain acceptance on Wall Street…”

He firmly asserted that Bitcoin (BTC) stands alone in achieving full institutional acceptance. He labeled BTC as the “singular universal” crypto asset suitable for institutional-grade investments, stating that “there won’t be another one.”

MicroStrategy’s founder is renowned for his unwavering focus on Bitcoin. Saylor’s remarks come shortly after MicroStrategy announced the addition of $1.65 billion worth of BTC to its corporate reserves in the first quarter.

Two days before, MicroStrategy also unveiled its Bitcoin-based decentralized identity (DID) product MicroStrategy Orange. Along with holding a large stash of BTc on its balance sheet, the company has also been making strong efforts in order to boost the Bitcoin ecosystem.

Future of Ethereum ETFs in the United States

While some of the top financial players like BlackRock and Fidelity have been pushing for a spot Ethereum ETF, market analysts have toned down their expectations of approval recently. One of the major concerns has been the recent comments from the SEC that seek to treat it as a security.

However, some of the top crypto industry firms are willing to defend Ethereum at all costs. Last week, ConsenSys slapped a lawsuit on U.S. SEC, and wants to declare it as a non-security.

As the SEC’s investigations into Ethereum unfold, it’s evident that spot Ethereum ETFs may face obstacles in the near future, potentially leading to further legal battles.

Spot market Ethereum ETFs would offer Wall Street firms and investors a means to gain indirect exposure to ETH, bypassing the need to navigate crypto exchanges or manage digital wallets. Earlier this week, Hong Kong became the first jurisdiction to approve a spot Ethereum ETF.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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