“Galaxy Digital’s Head of Firmwide Research, Alex Thorn, has made a bold prediction – a spot Ethereum ETF launching in May is about as likely as finding a unicorn in Times Square.
Why? Well, it seems the Securities and Exchange Commission has thrown a wrench in the plans with their pesky subpoenas and lack of enthusiasm. Rumor has it, they’re even trying to label ETH as a security. Looks like the road to an ETF just got a lot bumpier for crypto enthusiasts.”
Spot Ethereum Approval In May Unlikely
Exciting news has surfaced in the world of cryptocurrency as the Securities and Exchange Commission (SEC) has launched a series of subpoenas towards crypto companies inquiring about their ties to the Ethereum Foundation. This development, combined with the SEC’s apparent disinterest in engaging with ETF applicants, has sparked intense speculation about the fate of a spot Ethereum ETF, according to renowned expert Thorn. Interestingly, the SEC’s current stance is a sharp contrast to their previous approval of spot Bitcoin ETFs earlier this year.
The Securities and Exchange Commission is on a relentless mission to label ETH as a security, according to a recent Fortune report. The agency’s vigorous legal pursuit has sent shockwaves through the US market, with multiple companies being served subpoenas as part of the investigation. In a twist of events, the Ethereum Foundation was also targeted, receiving a secretive inquiry from a mysterious state agency. As a result, the foundation was forced to remove their warrant canary from their website, leaving investors and enthusiasts on edge.
“Breaking news from the world of finance! An industry expert, Thorn, has revealed that the Securities and Exchange Commission is hot on the trail of crypto companies and their dealings with the Ethereum Foundation. Rumor has it, they are digging for dirt on the original 2014 initial coin offering of Ethereum, questioning if it was an unregistered securities offering. Could this mean that the current trading of ETH could also be reclassified as securities trading? Stay tuned for more updates on this thrilling investigation!”
Thorn pondered the possibility of the SEC differentiating between the initial coin offering (ICO) and the subsequent trading of Ethereum (ETH). However, he couldn’t help but wonder about the rarity of taking legal action against the Ethereum Foundation after almost ten years in the game.
Is ETH A Security?
Revolutionizing the crypto world, SEC Chair Gary Gensler’s stance on Ethereum’s security status has been a hot topic of debate. But with Ethereum’s recent move to Proof-of-Stake, the SEC’s case for labeling it as a security has gained momentum. Surprisingly, the SEC has given the green light for the launch of multiple Ethereum ETFs, just a year after its monumental shift.
“Thorn’s fiery stance declares that any potential accusations of securities fraud against ETH and the Ethereum Foundation by the Securities and Exchange Commission could send shockwaves through the established industry, leaving legal waters murky and uncertain.”
Others Doubt ETH ETF Approval Too
“Echoing the sentiments of other industry leaders, Thorn raises doubts about the possibility of a spot Ethereum ETF receiving approval by May. Among them is Bitwise’s CIO, Matt Hougan, who proposes a strategic delay in the approval process. This would not only give Wall Street time to fully embrace spot Bitcoin ETFs, but also potentially attract a larger pool of assets. Could this be the key to unlocking the elusive Ethereum ETF?”
“I’ll take a maybe controversial view: I hope we don’t get an Ethereum ETF in May. I actually sort of want it to be later. I think Wall Street/traditional finance just started ingesting this giant thing called Bitcoin. And they’re just getting their hands around it. And I think you need to give them longer to digest.”
Alex Thorn