Dogecoin Creator Expresses Pessimistic Stance on Spot Ether ETF Approval

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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May 16, 2024 13:49 EDT

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The US Securities and Exchange Commission (SEC) has yet to decide on spot Ethereum exchange-traded funds (ETFs). On May 16, Billy Markus, co-founder of Dogecoin, voiced his doubts about their approval, saying that the SEC is “compromised” and may not approve the ETFs.

Markus made his skeptical comment in response to an X post discussing the importance of the approval of spot Ether ETFs for the ecosystem and the potential impact of a negative decision on Ethereum. He tweeted a response that “nothing good will come out” of the spot ETH ETF application.

Spot Ether ETF Approval “Not Important” to Drive Ethereum

Markus’ comment reflects a broader pessimism about the SEC’s ability to make fair and unbiased decisions regarding Ethereum and cryptocurrency.

i don’t think it’s that important personally

the SEC is compromised anyway, nothing good will come out of it until the house is cleaned

— Shibetoshi Nakamoto (@BillyM2k) May 15, 2024

Given this, Markus believes the regulator’s decision on spot Ether ETFs won’t negatively impact Ethereum’s trajectory or the cryptocurrency market as a whole. The Dogecoin creator’s views also echo the prevalent skepticism surrounding spot Ethereum ETFs.

Recently, finance lawyer Scott Johnsson suggested that Ethereum’s legal classification will play an important role in the upcoming ETF decisions.

I'm aware this is widely considered a possibility, but this is your official notice that the SEC is considering the security question for ETH in this upcoming spot ETF order. Note that this question was never (afaict) asked regarding a spot/futures BTC ETF product. pic.twitter.com/TwhqmTnJfC

— Scott Johnsson (@SGJohnsson) May 14, 2024

Johnsson’s view shows a key distinction in the SEC’s approach to Bitcoin and Ethereum.

Ethereum’s classification is receiving more regulatory scrutiny than Bitcoin, where its security status wasn’t a major focus during spot ETF filings. This shows a shift in focus between the two cryptocurrencies, suggesting a changing regulatory process for digital assets.

US SEC Previously Acknowledged Ethereum’s Non-Security Status

The upcoming decision dates for VanEck and ARK Invest’s applications for Ethereum ETFs, scheduled for May 23 and May 24, respectively, have sparked intense speculation within the crypto industry.

The potential approval of Ethereum ETFs is not just about price movements; it also carries symbolic importance, solidifying crypto’s legitimacy as an asset class and reaffirming its role in the evolving financial industry.

The trend toward regulatory clarity is evident, as seen in the SEC’s recognition of Ethereum’s non-security status through the approval of an Ethereum futures ETF for trading in October 2023. Thus, the SEC established a clear precedent for the approval of a spot Ethereum ETF.

Experts believe any deviation from this path would create regulatory uncertainty and weaken market confidence.

Hong Kong’s approval of spot Bitcoin and Ethereum ETFs, as well as their trading, demonstrate the increasing global acceptance and recognition of the potential of Ethereum-based financial instruments.