Dogecoin Creator Remains Cautious About Prospects of Ether ETF Approval

Dogecoin Creator Casts Doubt on Approval of Spot Ether ETF by SEC


By Jimmy Aki
Updated:
May 16, 2024 13:49 EDT
|
Reading Time: 1 minute


The decision on spot Ethereum exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) is still pending. Billy Markus, co-founder of Dogecoin, expressed skepticism about their approval, suggesting that the SEC might not give the green light due to being “compromised.”
Markus shared his doubts
in response to a post on X that discussed the significance of spot Ether ETF approval for the ecosystem and the potential consequences of a negative decision on Ethereum. In a tweet, he stated that “nothing good will come out” of the spot ETH ETF application.
Approval of Spot Ether ETFs Deemed “Unimportant” for Driving Ethereum
Markus’s comment reflects a broader pessimism about the SEC’s impartiality and fairness when it comes to Ethereum and
cryptocurrencies
.
Based on this, Markus believes that the regulator’s decision on spot Ether ETFs will not have a negative impact on the trajectory of Ethereum or the overall cryptocurrency market. His views align with the prevailing skepticism surrounding spot Ethereum ETFs.
Recently, finance lawyer
Scott Johnsson suggested
that the legal classification of Ethereum will play a crucial role in the forthcoming ETF decisions.
Johnsson’s perspective highlights a notable difference in how the SEC approaches Bitcoin and Ethereum.
Ethereum’s classification
is under more regulatory scrutiny compared to Bitcoin, where the security aspect was not a major focus during spot ETF filings. This shift in focus between the two cryptocurrencies suggests a changing regulatory process for digital assets.
SEC Previously Acknowledged Ethereum’s Non-Security Status
The upcoming decision dates for VanEck and ARK Invest’s Ethereum ETF applications, scheduled for May 23 and May 24 respectively, have sparked intense speculation within the crypto industry.
The potential approval of Ethereum ETFs goes beyond price movements; it carries significant symbolic importance, solidifying crypto’s legitimacy as an asset class and reaffirming its role in the evolving financial industry.
The trend towards regulatory clarity is evident, as demonstrated by the
SEC’s recognition of Ethereum’s non-security status
through the approval of an Ethereum futures ETF for trading in October 2023. Therefore, the SEC has set a clear precedent for approving a spot Ethereum ETF.
Experts believe that deviating from this path would create regulatory uncertainty and undermine market confidence.
The approval and trading of spot Bitcoin and Ethereum ETFs in Hong Kong
further illustrate the increasing global acceptance and recognition of Ethereum-based financial instruments.
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