Saylor predicts that the Securities and Exchange Commission (SEC) will classify Ethereum as a security in the coming months and reject spot ETF applications related to the cryptocurrency. This prediction was made by Michael Saylor, the executive chairman and co-founder of MicroStrategy, during a presentation at the MicroStrategy World 2024 conference. Saylor also predicted that other cryptocurrencies such as BNB, Solana, XRP, and Cardano will also receive an unregistered security designation. He emphasized that none of these cryptocurrencies will be accepted by Wall Street or wrapped by a spot ETF. Saylor believes that Bitcoin is the only crypto asset with full institutional acceptance and stated that there won’t be another one like it.
Saylor’s predictions align with the diminishing expectations for the approval of spot Ethereum ETFs. Despite initial optimism, the chances of approval have dropped significantly, with some analysts estimating the odds at less than 30%. The critical date for the SEC’s decision on VanEck’s proposed ETF is May 23, and it is expected that other similar applications will be decided upon simultaneously. Additionally, there is a legal case in which Consensys is seeking a statement from the SEC declaring that Ethereum is not a security. The outcome of this case could have significant implications for companies dealing with Ethereum as an asset and could also impact the SEC’s approval of certain products, such as a spot ETF.