Consensys, a blockchain and Web3 software development company, has responded to the SEC’s concerns about potential fraud and manipulation risks associated with Ethereum’s proof-of-stake system and spot Ether exchange-traded funds (ETFs). In a comment letter submitted to the regulatory agency, Consensys stated that these concerns are unfounded.
In a blog post, Consensys highlighted the advantages of Ethereum’s infrastructure compared to Bitcoin. These advantages include quicker block finality, a division of responsibilities to prevent stakeholder dominance, higher attack costs, penalties for rule violations, and superior environmental sustainability. Consensys also emphasized Ethereum’s larger developer community and its fully transparent and public blockchain. They urged the SEC to recognize Ethereum’s superior security features, surpassing those of Bitcoin-based ETPs that have previously been approved.
The approval of a spot Ether ETF in May is still uncertain, despite the popularity of spot Bitcoin ETFs. The final SEC deadline for approving or denying spot ETH ETF applications is on May 23, starting with VanEck’s investment vehicle. While some experts are optimistic about approval in 2023, others believe that the SEC could deny the applications and extend the decision into 2024.
Several firms, including Fidelity, Hashdex, and ARK 21Shares, have pending spot ETH ETF applications awaiting approval or denial. The SEC began approving investment vehicles tied to Ether futures in October 2023.
Crypto gamblers are placing bets on whether spot Ether ETFs will be approved by the SEC before May 31. The total amount wagered on the ETF outcomes has reached at least $12 million on the predictions market. The SEC has already approved the trading and listing of 11 spot Bitcoin ETFs on January 10.
Grayscale, an investment management company, has expressed confidence in a favorable decision by the SEC for spot Ether ETFs by May. The chief legal officer of Grayscale, Craig Salm, stated that the SEC’s perceived lack of engagement with applicants does not indicate whether an ETF will be approved.
In other news, Ether ETFs are facing opposition in the Senate, and it has been confirmed that Craig Wright is not Satoshi. Additionally, Dencun has gone live, as reported in Hodler’s Digest from March 10-16.