MicroStrategy executive chairman and co-founder Michael Saylor has made a bold prediction regarding the future of Ethereum. During a presentation at the MicroStrategy World 2024 conference, Saylor suggested that the SEC will classify Ethereum as a security this summer and reject the related spot ETF applications filed by asset managers, including BlackRock.
In addition to Ethereum, Saylor also predicted that other cryptocurrencies “down the stack” such as BNB, Solana (SOL), XRP, and Cardano (ADA) will also be given an unregistered security designation.
Saylor emphasized his belief that Bitcoin (BTC) is the only crypto asset with full institutional acceptance, calling it the “one universal” institutional-grade asset and asserting that there will not be another like it.
MicroStrategy, known for its focus on Bitcoin, recently announced the addition of $1.65 billion of BTC to its corporate holdings in the first quarter, along with the launch of a Bitcoin-based decentralized identity (DID) product.
The decision on Ethereum’s classification by the SEC is eagerly anticipated by the market, with the odds of spot Ethereum ETF approval falling to just 11% according to Polymarket. Analysts have also revised their expectations, lowering the chances of approval from over 80% to less than 30%.
The SEC’s crucial decision date is set for May 23, when it must decide on VanEck’s proposed ETF and other similar applications. There is also speculation that the SEC may need to clarify whether ETH is considered a security.
The potential designation of ETH as a security could have significant implications for companies looking to work with the asset and for products such as spot ETFs. The issue has also attracted attention from US lawmakers, with Consensys seeking clarification from the SEC on the matter in a legal case.
Overall, Saylor’s prediction has sparked discussions within the crypto community about the future of Ethereum and the regulatory landscape surrounding cryptocurrencies.
