News - Ethereum ETF approval unlikely in near future

By Mike Hesp

Ethereum ETF approval unlikely in near future

Ethereum (ETH)
ETF

Following the approval of the Bitcoin spot ETF, hopes are high that applications for Ethereum will also be approved. The Morgan Creek CEO is now downplaying these hopes.

In the wake of last week's approval of the Bitcoin ETF, benefited one cryptocurrency in particular instead of Bitcoin: Ethereum. The hope of a similar fate for the altcoin was probably behind this.

Industry celebrities such as Eric Balchunas predicted a 70 percent probability that Ethereum spot ETF would receive approval this May.

Mark W. Yusko is now overturning these hopes. In a interview with the crypto portal Cointelegraph, the CEO and founder of asset manager Morgan Creek Capital Management says, "I expect it to be less than 50/50."

The reason is that the SEC remains very hostile to the crypto industry, as evidenced by the statement from the head of the U.S. Securities and Exchange Commission, Gary Gensler.

In approving Bitcoin spot ETFs, with Gensler speaking out forcefully, he noted, "While we have approved the listing and trading of certain Bitcoin spot ETFs today, it is important to emphasize that we have not approved or officially recognized Bitcoin itself."

The approval of the BTC ETF also means nothing for other cryptocurrencies, the "vast majority of which remain investment contracts" that fall under federal securities laws rather than the SEC's jurisdiction.

Mark W. Yusko sees a similar hurdle for Ethereum spot ETF registrations. While Bitcoin is categorized as a commodity, the SEC considers Ethereum a security.

The investment banker also commented on the importance of spot ETF registrations for Bitcoin. The move will "dramatically reduce" Bitcoin's volatility - and with it potential gains. Investors should accept this, however, because it means the asset is "maturing." Bitcoin "was not invented for day trading, but to exchange value without asking permission."

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