Home CryptocurrencyBitcoin SEC Ether Spot ETF Concerns Are Unfounded, Consensys Claims

SEC Ether Spot ETF Concerns Are Unfounded, Consensys Claims

by SuperiorInvest

Consensys addressed the US Securities and Exchange Commission's (SEC) investigation into potential fraud and manipulation risks related to Ethereum's proof-of-stake system, particularly as it relates to exchange-traded funds (ETFs). of Ether in spot.

In a comment letter sent to the regulatory agency, Consensys, the blockchain and Web3 software development company behind the popular MetaMask wallet, stated that concerns about fraud and manipulation are unfounded.

Consensys explained in a blog post,

“In fact, Ethereum's PoS implementation meets and even exceeds Bitcoin's proof-of-work (PoW) security, which underlies Bitcoin-based ETFs that have already been approved for trading by the SEC.”

Infrastructure company Ethereum highlighted the advantages of Ethereum: faster block finality than Bitcoin, a division of responsibilities between proponents and attesters to deter dominance by interested parties, higher attack costs, penalties for rule violations of validator and superior environmental sustainability compared to Bitcoin.

Consensys highlighted that Ethereum has a larger developer community than Bitcoin and operates on a public and fully transparent blockchain. Consensys urged the SEC to recognize Ethereum's superior security features, surpassing those of Bitcoin-based ETPs previously approved by the SEC.

Although Bitcoin spot ETFs have proven to be exceptionally popular, it remains debatable whether or not an Ether spot ETF will be approved in May of this year.

Related: Bitwise Files with SEC for Ether Spot ETF Listing

The SEC's final deadline to approve or deny the next round of ETH spot ETF applications will arrive on May 23, starting with VanEck's investment vehicle. Although many experts seemed optimistic about approval in 2023, some have suggested that by 2024 the commission could reject applications.

Several companies have ETH ETF applications pending approval or denial, including Fidelity, Hashdex, and ARK 21Shares. The SEC began approving investment vehicles linked to Ether futures in October 2023.

Cryptocurrency players are placing bets on whether the US SEC will approve Ether spot ETFs before May 31. Overall bets on ETF outcomes have reached at least $12 million in the prediction market. The SEC finally approved the trading and listing of 11 spot Bitcoin ETFs on January 10.

Investment management firm Grayscale has expressed confidence in a favorable SEC decision for spot Ether ETFs by May. On March 25, Grayscale Chief Legal Officer Craig Salm said the SEC's perceived “lack of commitment” to applicants does not indicate whether an ETF will be approved.

Magazine: Ether ETFs face Senate opposition, Wright is no Satoshi, and Dencun hits the ground running: Hodler's Digest, March 10-16

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