The United States Securities and Exchange Commission is unlikely to approve a spot Ether (ETH) exchange-traded fund (ETF) this year despite the optimism sparked by the recent approval of the first spot (BTC) Bitcoin ETF, according to Morgan Creek Capital co-founder and CEO Mark Yusko.
In a recent interview, Bloomberg ETF analyst Eric Balchunas said there is a 70% chance a spot Ether ETF will be approved by May. However, Yusko disagrees.
“I’d probably say less than 50/50,” he told Cointelegraph in an exclusive interview.
Despite the recent Bitcoin ETF approval, Yusko argued that the SEC remains broadly hostile toward cryptocurrencies, as was suggested by the agency’s head, Gary Gensler, in his message on the day of the approval.
Another obstacle, according to Yusko, is that the SEC may still regard Ether as a security — unlike Bitcoin, which is considered a commodity.
Switching topics to Bitcoin, Yusko argued that the approval of the spot ETF will dramatically reduce BTC’s volatility and, therefore, its potential returns. Investors should welcome that, according to Yusko, as it’s a sign of the maturation of the asset.
“It wasn’t invented for day trading,” he said about Bitcoin. “It was invented to allow you and I to exchange value without asking permission.”
To find out more about the long-term impact of the spot Bitcoin ETF approval, check out the full interview on Cointelegraph’s YouTube channel, and don’t forget to subscribe!
