Ethereum
Did Michael Saylor Just Tag Cryptocurrencies ETH, XRP, and ADA?
Read U.TODAY on
Google News
MicroStrategy founder and president Michael Saylor took a direct dig at Ethereum (ETH) and other top altcoins in the market. Speaking At the company’s Bitcoin for Corporation event, Saylor predicted that a Spot Ethereum ETF would not be approved this summer.
Ethereum, XRP and ADA are securities
Michael Saylor became a strong advocate of Bitcoin when he made his first acquisition in August 2020. Since then, he has joined the elite group of Bitcoin maxis who believe that any other digital currency is inferior in terms of technology and decentralization.
He said that when the Ethereum spot ETF is disallowed, it will be clear to everyone that ETH is not a commodity. By extension, he characterized Binance Coin (BNB), Solana (SOL), XRP, Cardano (ADA) and all the rest as mere unregistered crypto asset titles.
This is a rather polarizing statement that is generating market buzz, as some of these coins have been labeled titles in the lawsuits filed by the US SEC against the exchanges Binance and Coinbase. Although the status of the majority of coins has yet to be determined in court, XRP does not fit into the pile.
That’s because Judge Analisa Torres declared in its judgment in the Ripple v. SEC case last year, XRP itself is not an investment contract.
Altcoin ETF Outlook
Michael Saylor minced no words when he said that none of the security-labeled altcoins would ever be wrapped by an exchange-traded fund (ETF) spot product. He also predicted that none of them would be accepted by Wall Street in the same way. Morgan Stanley, BNP Paribas and others are betting on spot Bitcoin ETFs.
The fate of the Ethereum ETF is uncertain at present, complicating optimism about alternative ETF products involving XRP and other long-term assets.
About the Author
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was born when, as a former banker, he discovered the clear advantages of decentralized money over traditional payments. With his extensive experience covering various aspects of Web3, Godfrey’s articles have been featured on Blockchain.news, Cryptonews, and Coingape, among others.