MicroStrategy founder Michael Saylor has made a series of negative predictions for Ethereum (ETH) and other altcoins such as XRP and Cardano (ADA). Saylor shared his thoughts during MicroStrategy’s recent Bitcoin for Corporation event, and a video clip of his comments has been circulating online.
Saylor specifically targeted Ethereum, suggesting that the United States Securities and Exchange Commission (SEC) will not approve any applications for Ethereum spot-based exchange-traded funds (ETFs) this summer. He believes that once the SEC denies these applications, it will become clear to everyone that ETH is not a commodity but an unregistered security.
In addition to ETH, Saylor criticized other cryptocurrencies including XRP, Solana (SOL), Binance Coin (BNB), and Cardano (ADA), stating that they are also unregistered crypto asset securities. He believes that these altcoins will not receive approval for their spot ETFs and are unlikely to gain mainstream adoption among institutional investors and Wall Street.
Despite his negative outlook on altcoins, Saylor continues to express his support for Bitcoin, describing it as the “one, universal, consensus, accepted, institutional-grade crypto asset.” He has been a vocal advocate for Bitcoin since August 2020 when MicroStrategy began acquiring BTC.
All of the altcoins mentioned by Saylor are currently under investigation or facing lawsuits related to securities regulations by the SEC. XRP, in particular, has received legal clarity as a security in the United States following a federal court ruling in July 2023.
While there was optimism earlier this year about the approval of at least one Ethereum ETF in 2024, the fate of Ethereum’s ETF prospects is uncertain due to the SEC’s ongoing investigation into whether certain Ethereum transactions constitute securities. However, Larry Fink, CEO of BlackRock, believes that an Ethereum ETF could still be launched even if the SEC classifies ETH as a security. BlackRock is one of the companies interested in launching a spot ETF for Ethereum.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The views expressed in this article are solely the author’s opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.