Bitcoin Maxi Slams Ethereum ETF: Calls It A ‘Proof-of-Stake Scam’ Unfit For SEC Approval

The Ethereum (ETH) community has continued to eagerly await news on approving a spot Ethereum Exchange-Traded Fund (ETF) slated to occur by May.

However, as the US Securities and Exchange Commission (SEC) maintains a conspicuous silence on the matter, speculation has risen on the likelihood of the approval.

This speculation is further fuelled by the scarcity of concrete details regarding the approval process, leaving investors and enthusiasts worried and anticipating.

Bitcoin Maxi Weighs In Ethereum Spot ETF Approval

In the spot Ethereum ETF debate, notable voices from the cryptocurrency space have offered their perspectives.

Renowned Bitcoin maximalist and advisor to the president of El Salvador, Max Keiser, has recently expressed skepticism regarding the SEC’s cautious approach to approving an Ethereum ETF.

Keiser, known for his staunch advocacy of Bitcoin and skepticism towards alternative cryptocurrencies, dismissed Ethereum as a “proof-of-stake scam,” suggesting it lacks the regulatory backing necessary for SEC approval.

The SEC is right not to approve an Ethereum (ETH) ETF

It’s a proof-of-stake scam that fails on all requirements the SEC would look for. https://t.co/nLz8boTGtW

— Max Keiser (@maxkeiser) April 11, 2024

Keiser’s sentiment echoes that of Bloomberg’s Senior ETF Analyst, Eric Balchunas, who also recently shared a conservative outlook on the likelihood of an ETH spot ETF receiving regulatory approval.

Balchunas estimated the chances of approval at a mere 25%, further fueling uncertainty surrounding the prospect of an Ethereum ETF.

Re Eth ETF approval, we are holding the line at 25% odds altho tbh it is a very pessimistic 25%. The lack of engagement seems to be purposeful vs procrastination. No positive signs/intel anywhere you look. Personally hope they do approve it but it just ain’t looking good. https://t.co/nuBdCDE18L

— Eric Balchunas (@EricBalchunas) March 25, 2024

Additionally, VanEck CEO Jan Van Eck expressed anticipation of a potential rejection of their Ethereum ETF application, citing prolonged regulatory reviews and lack of clarity from the SEC.

Spot ETH ETF Gains Regulatory Interest Overseas

Amidst the uncertainty surrounding the US SEC’s stance on Ethereum ETFs, reports suggest a contrasting regulatory environment in Hong Kong.

According to Bloomberg, Hong Kong regulators may soon approve exchange-traded funds investing directly in Bitcoin and Ethereum, signaling a potential shift in global regulatory attitudes towards cryptocurrency investment products.

If approved, these ETFs could offer investors new avenues for exposure to the digital asset market. Several firms are poised to launch ETFs pending regulatory clearance from the Securities and Futures Commission.

Among the prospective issuers awaiting approval are international arms of Chinese asset manager Harvest Fund Management Co. and a partnership between Bosera Asset Management (International) Co. and HashKey Capital.

Upon receiving regulatory approval, these firms have indicated their intent to launch ETFs investing in BTC and ETH, highlighting the growing demand for cryptocurrency investment products in global markets.

Featured image from Unsplash, Chart from TradingView