Keyrock’s Kaleidoscope Unveils Groundbreaking Ether ETFs: Crypto’s Next Revolution

In an exclusive interview with Cointelegraph on February 23, Kevin de Patoul, the CEO of Keyrock, a digital asset market maker, expressed his belief that the approval of spot Ether exchange-traded funds (ETFs) is not a guaranteed success. While the possibility of Ether ETFs has gained significant attention in the cryptocurrency industry, with Bernstein, a wealth management firm, suggesting that Ether may be the only cryptocurrency to receive an ETF this year, de Patoul warns that there are still obstacles to overcome. He compares the challenges faced by Ether ETFs to the difficulties encountered in getting the first spot Bitcoin ETFs approved in the United States. One major concern is the potential classification of Ether as a security by Securities and Exchange Commission (SEC) Chair Gary Gensler. Although former SEC Division Director William Hinman dismissed this idea in a 2018 speech, Gensler has thus far avoided giving a clear answer on the matter. De Patoul argues that Ether does not meet the criteria of a security, but he acknowledges that the introduction of staking yield, which occurred after Ethereum’s transition to a proof-of-stake consensus model, could make it appear more like a security offering from the SEC’s perspective. The recent surge in Ether’s price, surpassing the $3,000 mark for the first time in 22 months, has sparked renewed interest in Ether ETFs. De Patoul attributes this price increase to the anticipation surrounding a potential spot ETF and the upcoming Dencun upgrade.