MicroStrategy founder Michael Saylor has made pessimistic predictions about Ethereum (ETH) and other altcoins such as XRP and Cardano (ADA), stating that they will not receive approval for a spot ETF. Saylor shared these predictions during MicroStrategy’s recent Bitcoin for Corporation event, and a video clip of his harsh comments has been circulating on various platforms.
In his remarks, Saylor targeted not only ETH but also other crypto assets including XRP, Solana (SOL), Binance Coin (BNB), and Cardano (ADA), labeling them as unregistered crypto asset securities. He emphasized that these altcoins will not succeed in obtaining a spot ETF and are unlikely to attract institutional investors and Wall Street.
However, Saylor expressed unwavering support for Bitcoin, referring to it as the “one, universal, consensus, accepted, institutional-grade crypto asset.” Saylor has been a strong advocate for Bitcoin since August 2020 when MicroStrategy embarked on its BTC acquisition spree. He has not only led MicroStrategy’s BTC acquisition but has also collaborated with other Bitcoin proponents to advocate for stricter regulations against altcoins.
All the altcoins mentioned by Saylor are currently under investigation or involved in lawsuits related to securities regulations by the United States Securities and Exchange Commission (SEC). XRP was deemed a security by the SEC in December 2020 in the case against Ripple. Similarly, SOL, ADA, and BNB were classified as securities in lawsuits against Coinbase and Binance.
While ETH has not officially been classified as a security by the SEC, the regulatory agency is investigating whether certain ETH-related transactions can be considered investment contracts.
Among the assets referred to as securities by Saylor, XRP is the only altcoin that has received legal clarity in the United States. A New York federal court provided this clarity in July 2023.
There was optimism among crypto enthusiasts earlier this year regarding the approval of at least one Ethereum ETF in 2024. This optimism grew following the SEC’s approval of multiple Bitcoin ETFs in January, with Bloomberg ETF expert Eric Balchunas estimating the odds of approval at 70%.
However, with the SEC’s ongoing investigation into whether certain Ethereum transactions can be classified as securities, the fate of Ethereum’s ETF prospects remains uncertain. Nevertheless, Larry Fink, CEO of BlackRock, believes that an Ethereum ETF could still be launched even if the SEC considers ETH a security. BlackRock is one of the companies competing to launch a spot ETF for Ethereum.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment decisions, and The Crypto Basic is not liable for any financial losses incurred.