Max Keiser Dismisses Ethereum ETF as a “Proof-of-Stake Scam”

Maxwell Mutuma
April 12, 2024
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Ethereum ETF Outflows Worsen Amid Whale Dump, ETH Price Flashes Sell Signal

Highlights

  • Max Keiser, known for his Bitcoin advocacy, doubts the SEC's approval of an Ethereum ETF, labeling Ethereum a "proof-of-stake scam."
  • Keiser aligns with other industry figures from VanEck and CoinShares, who also anticipate a rejection of the Ethereum ETF by the SEC.
  • Amid the Coinbase vs. SEC lawsuit, Keiser supports the SEC's stance, classifying all altcoins, including ether and ripple, as "unregistered securities."

Max Keiser, a famous Bitcoin maximalist and advisor to the president of El Salvador, expressed doubts about the possibility of an Ethereum ETF. Keiser, a vocal champion of Bitcoin and a critic of other digital assets, rejects Ethereum, stating it is a “proof-of-stake scam,” claiming that it is not suitable for approval by the U.S. Securities and Exchange Commission (SEC).

Keiser’s comments are also similar to those of others in the industry, such as VanEck and CoinShares, who have doubts about whether an Ethereum ETF is likely to get SEC approval. The CEO of VanEck expects a rejection of the ETF, saying that the SEC rarely provides constructive feedback on proposals. In the same vein, the head of CoinShares sees a dim future for Ethereum ETF approval this year, if at all.

Besides, Keiser’s recent backing of the SEC in the continuous court conflict of the Coinbase vs. SEC lawsuit highlights his position. Keiser stated that all altcoins, ether, and ripple are “unregistered securities,” putting them in line with the SEC’s categorization. The quote comes after a court decision on the dismissal of Coinbase’s request to dismiss a lawsuit filed by the SEC against the company for participating in the trading of unregistered securities.

Advertisement
Advertisement

Market Speculation Concerning the Approval of Ethereum ETF

The crypto community is waiting for the approval of a spot Ethereum Exchange-Traded Fund (ETF), and many analysts and experts debate what the regulator will do. Initially scheduled for May, all the expectations of approval have disappeared. To this date, the SEC has been silent on the matter; consequently, clear details have become evasive.

The newest twist in this story comes from the side of JP Morgan and the speculations of potential litigation from the SEC if an Ethereum ETF does not appear in May. Rumors have it that such legal measures may make the SEC rethink its position on Ethereum ETFs. Nonetheless, with big industry guns such as Max Keiser being skeptical and experiencing regulatory uncertainty, the approval path is too obscure.

Advertisement
Advertisement

SEC on the Prudence and Legal Battle with Coinbase

Max Keiser deems Ethereum a “proof-of-stake scam,” thus supporting the SEC’s anticipated dilemmatic decision to authorize an Ethereum ETF. In addition, the continuing legal battle between the SEC and Coinbase only serves to draw more regulatory attention to altcoins, with the agency claiming the trading of unregistered securities.

Read Also: XRP Ledger (XRPL) Welcomes Crucial NFT Amendment on Mainnet

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.