Consensys, a leading blockchain and Web3 software development company, has faulted the seeming apprehension that the United States Securities and Exchange Commission (SEC) has toward spot Ether exchange-traded fund (ETF). The regulator has repeatedly cited the potential fraud and manipulation risks that may be linked to Ethereum’s proof-of-stake system as the reasons for its concern.
However, in a comprehensive comment letter, Consensys has reminded the regulator that its concerns hold no water. Detailing its view in a blog post, Consensys first explained how the security features of Ethereum outshines that of Bitcoin. Part of the statement reads:
“In fact, Ethereum’s PoS implementation meets and even exceeds the security of Bitcoin’s proof-of-work (PoW), which underlies Bitcoin-based ETFs that have already been approved for trading by the SEC.”
Consensys
Furthermore, Consensys also mentioned some other advantages that Ethereum possesses over Bitcon. Some of those include its quicker block finality, a robust system to deter stakeholder dominance, penalties for validator rule violations. That is not to mention Ethereum’s superior environmental sustainability among other things, according to the company.
Consensys then pointed the SEC in the direction of the spot Bitcoin ETFs it recently approved. The firm reminded the regulator of the sterling performance that those have put up since their January approval. It then added that the distinctiveness of Ethereum-based ETFs most likely makes them poised to garner more traction and possibly perform better.
SEC Issues Ultimatum for Spot Ether ETF Approval
Presently, it is unclear what the future holds for spot Ether ETFs. However, the SEC is set to make the all-important decision regarding them by May 23.
As of publication, several firms, including Fidelity, Hashdex, ARK 21Shares, and many more have lined up applications with the SEC. However, the initial optimism around the applications appears to be diminishing. Many experts who, back in 2023, were high with hopes are now speculating that the commission may choose to deny applications.
As the countdown to May continues, stakeholders can only hope that the regulator will issue a decision that could usher in a new era for Ethereum-based investment opportunities.
