The United States Securities and Exchange Commission (SEC) is unlikely to approve a spot Ethereum ETF this year despite optimism sparked by the recent approval of the first spot BItcoin ETF, according to Morgan Creek Capital CEO and co-founder Mark Yusko.
In a recent interview, Bloomberg ETF analyst Eric Balchunas, said there is a 70% chance a spot Ethereum ETF will be approved by May. However, Yusko disagrees.
“I’d probably say less than 50/50,” he said in an exclusive Cointelegraph interview.
Despite the recent Bitcoin ETF approval, he argues the SEC remains broadly hostile towards cryptocurrencies, as was suggested by the agency’s head Gary Gensler in his message on the day of the approval.
Another obstacle, according ro Yusko, is that the SEC may still regard Ether as a security, unlike Bitcoin which is considered a commodity.
Switching topics to Bitcoin, Yusko argues that the approval of the spot ETF is going to dramatically reduce BTC’s volatility and, therefore, its potential returns. Investors should welcome that, according to Yusko, since it is a sign of the maturation of the asset.
“ It wasn’t invented for day trading,” said Yusko 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 our YouTube channel and don’t forget to subscribe!