Galaxy CEO Alex Thorne posted a message on social network X regarding the current situation with the Ethereum (ETH) cryptocurrency.He noted that if the information that the US Securities and Exchange Commission (SEC) has fundamentally changed its position on spot ETH-ETFs turns out to be true, then there may be a rationale for this.
Thorne suggested that regulators may be trying to differentiate between ETH itself, which would not be considered a security, and the ETH staking process.He emphasized that “ETH staking as a service” could be classified differently.The SEC can gain control over this process by classifying it as a security.
According to Thorne, this could bring clarity to the various legal proceedings initiated by the Commission in the past and allow the SEC to allow the launch of ETH-ETFs without deviating from its principles.
Thorne also noted that the Commission will likely prohibit asset managers from staking.The launch of spot ETFs on Ethereum could lead to several positive changes in the cryptocurrency market.Firstly, it will attract new investors and make digital currency more accessible to a wider audience.Institutional investors will have a convenient way to invest in assets without having to directly purchase and hold Ether (ETH).Secondly, it will increase market liquidity, which in turn will attract more traders and investors, increasing the overall Ethereum trading volume.
Additionally, it will provide greater transparency and better regulation as ETFs are always subject to the established rules and regulations of the supervisory authorities.Finally, the launch of spot ETFs on Ethereum will help diversify investment portfolios.Companies that have previously had no exposure to cryptocurrencies or have avoided investing directly in them will be able to include ETH in their portfolios through an ETF.
This will create new opportunities and help better distribute risks.
