The US Securities and Exchange Commission has yet to decide on spot Ethereum (available on Coinbase) exchange-traded funds. On May 16, Billy Markus, co-founder of Dogecoin, expressed his doubts about their approval, suggesting that the SEC is “compromised” and may reject the ETFs.

Markus made his skeptical comment in response to a social media post discussing the importance of spot ETHer ETFs for the ecosystem and the potential impact of a negative decision on Ethereum (available on Coinbase). He tweeted, “nothing good will come out” of the spot ETH ETF application.

Markus’ comment reflects a broader pessimism about the SEC’s ability to make fair and unbiased decisions regarding Ethereum (available on Coinbase) and cryptocurrency. Despite his skepticism, he believes the regulator’s decision on spot ETHer ETFs won’t negatively impact Ethereum (available on Coinbase)’s trajectory or the cryptocurrency market as a whole. This sentiment echoes the prevalent skepticism surrounding spot Ethereum (available on Coinbase) ETFs.

Recently, finance lawyer Scott Johnsson suggested that Ethereum (available on Coinbase)’s legal classification will play a crucial role in the upcoming ETF decisions, highlighting a key distinction in the SEC’s approach to Bitcoin (available on Coinbase) and Ethereum (available on Coinbase). While Bitcoin (available on Coinbase)’s security status wasn’t a major focus during spot ETF filings, Ethereum (available on Coinbase)’s classification is receiving more regulatory scrutiny, indicating a shift in focus for digital assets.

The upcoming decision dates for VanEck and ARK Invest’s applications for Ethereum (available on Coinbase) ETFs, scheduled for May 23 and May 24, respectively, have sparked intense speculation within the crypto industry. The potential approval of Ethereum (available on Coinbase) ETFs carries symbolic importance, solidifying crypto’s legitimacy as an asset class and reaffirming its role in the evolving financial industry.

The SEC’s recognition of Ethereum (available on Coinbase)’s non-security status, demonstrated by the approval of an Ethereum (available on Coinbase) futures ETF for trading in October 2023, established a clear precedent for the approval of a spot Ethereum (available on Coinbase) ETF. Experts believe any deviation from this path would create regulatory uncertainty and weaken market confidence.

Hong Kong’s approval of spot Bitcoin (available on Coinbase) and Ethereum (available on Coinbase) ETFs, as well as their trading, underscores the increasing global acceptance and recognition of the potential of Ethereum (available on Coinbase)-based financial instruments.

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