Consensys Asserts Unfounded Concerns over SEC’s Ether ETF
Consensys, the blockchain and Web3 software development company, has responded to the SEC’s inquiry regarding potential fraud and manipulation risks associated with Ethereum’s proof-of-stake (PoS) system, specifically concerning spot Ether exchange-traded funds (ETFs). In a comment letter submitted to the SEC, Consensys stated that concerns about fraud and manipulation are unfounded. They emphasized that Ethereum’s PoS implementation is even more secure than Bitcoin’s proof-of-work (PoW) system, which is the foundation of Bitcoin-based ETFs approved by the SEC.
Consensys highlighted Ethereum’s advantages over Bitcoin, including faster block finality, a division of responsibilities to prevent stakeholder dominance, higher attack costs, penalties for validator rule violations, and superior environmental sustainability. They also pointed out that Ethereum has a larger developer community and operates on a fully transparent and public blockchain. Consensys urged the SEC to recognize Ethereum’s superior security features and consider them when evaluating spot Ether ETF applications.
The approval of spot Ether ETFs is still up for debate. The SEC has set a deadline of May 23 to approve or deny the next round of applications, starting with VanEck’s investment vehicle. While some experts are optimistic about approval in 2023, others believe that the SEC may deny the applications in 2024. Fidelity, Hashdex, and ARK 21Shares are among the firms with pending spot ETH ETF applications. The SEC began approving investment vehicles tied to Ether futures in October 2023.
There is a significant amount of speculation in the form of bets on whether spot Ether ETFs will be approved by the SEC before May 31. The predictions market has seen at least $12 million in bets on the ETF outcomes. It is worth noting that the SEC already approved the trading and listing of 11 spot Bitcoin ETFs on January 10.
Grayscale, an investment management company, is confident that the SEC will make a favorable decision regarding spot Ether ETFs by May. The chief legal officer of Grayscale, Craig Salm, has stated that the perceived lack of engagement from the SEC with applicants should not be taken as an indication of whether an ETF will be approved.
10 thoughts on “Consensys Asserts Unfounded Concerns over SEC’s Ether ETF”
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It’s clear that Consensys has a vested interest in getting spot Ether ETFs approved. Their statement to the SEC should be taken with a grain of salt.
Consensys is being disingenuous by emphasizing Ethereum’s advantages over Bitcoin. They’re trying to distract from the potential risks of spot Ether ETFs.
The debate on approving spot Ether ETFs is intense, but I’m hopeful for a positive outcome before May 31. It’s interesting to see the predictions market with $12 million in bets on the ETF outcomes! The fact that SEC has already approved spot Bitcoin ETFs in the past gives me hope for Ethereum as well.
Consensys is just trying to downplay the concerns of fraud and manipulation associated with Ethereum’s PoS system. They’re ignoring the potential risks involved.
Consensys is doing a great job addressing the SEC’s concerns about fraud and manipulation risks associated with Ethereum’s PoS system! 🌟 They are highlighting all the advantages Ethereum has over Bitcoin, which shows their confidence in the platform’s security. 💪 It’s great to see them emphasizing factors like faster block finality and penalties for rule violations. 🚀 Ethereum’s larger developer community and transparent blockchain make it even more trustworthy. 🙌 I hope the SEC recognizes these superior security features while evaluating spot Ether ETF applications. 🤞
The SEC should not be swayed by Consensys’ claims. They need to carefully consider the risks associated with spot Ether ETFs and make an informed decision.
Consensys’ statement to the SEC is just a bunch of empty promises. They’re not backing up their claims with any real evidence.
This is just another attempt by Consensys to manipulate the SEC into approving spot Ether ETFs. They’re downplaying the very real risks of fraud and manipulation associated with Ethereum’s PoS system.
It’s concerning that Consensys is brushing off the concerns of fraud and manipulation associated with spot Ether ETFs. They’re not taking the risks seriously.
Consensys is just trying to make themselves look good by emphasizing Ethereum’s larger developer community and transparent blockchain. It’s all smoke and mirrors.