Bitcoin Forum

Do you agree with the article? It mentions that the noncurrency attributes of Ethereum will give it a better chance to have an ETH ETF approved. Was it really bitcoin's currency attributes that had its ETF application denied by the SEC or was it because of bitcoin's decentralized and uncensorable attributes?

https://www.crypto-news.net/wp-content/uploads/2017/05/ETHEREU-Gold.jpg

Higher chance for an Ethereum ETF

As mentioned earlier, there is a higher chance for the Ethereum ETF to be approved by the SEC. The non-currency like attributes possessed by this cryptocurrency could tempt them to give their approval. On the other hand, Ethereum (also known as ETH) has specifically been designed with the objective of supporting decentralized applications, including “gas”. It is possible for users to make payments with the help of gas. Or else, they can make payments while they are initiating new smart contracts. Because of these native features, it has become somewhat difficult to establish ETH as just a currency.

The SEC has also made an official announcement about Ethereum. In their announcement, it was mentioned that Ethereum exchanges looks different than those for Bitcoin. They believe that ETH was not designed with the mindset of functioning entirely as a store value.

Read the whole article https://www.crypto-news.net/will-ethereum-beat-bitcoin-to-an-etf/

Personally I think Ethereum will not beat bitcoin to an ETF approval by SEC but looking at the linked news from cryptonews by OP it might beat bitcoin to an ETF but it is hard to say. As said in the link given by you OP, "SEC tends to think about ETH as an asset", not a currency which made me think twice therefore even if it is approved it wouldn't be considered as a currency in the first place but as an asset, like stocks. Also, there is only one reason for SEC to be tempted to approve it, ETH markets on United States, China and South Korea being in a well regulated manner which is the dominant markets which I think would not be enough to say for sure that Ethereum will be the first to have an ETF approval because there are many more unregulated markets similar to bitcoin exchanges even if the dominant ones are regulated.

Eth seems more organized, focus and transparent than BTC.And having a face also helps.
If Eth's ETF passes before BTC's, It would be really bad or good for BTC definitely nothing in between just extremes.

Centralization makes it look organize, that is the advantage of a centralized management unlike bitcoin where decision needs a consensus from different developers or camp of developers.  I would think that ETH would have a better chance because all the people behind it are known and can be controlled if the government wanted to.  Meaning, ETH can easily be regulated by the government that is why it can have a more chance in ETF.

well lets see.
- ethereum is centralized.
- it had an ICO which is not something that SEC can approve of
- the price is highly volatile (one of the reasons they denied bitcoin ETF)
- it is not regulated. (the main reason they denied bitcoin ETF)
- it is manipulated and again SEC will not approve of this.
- ethereum was never meant to be traded, it was the platform which then had the tokens called ETH which was traded and gained value.
- it is not even as old yet!

so yeah, if SEC approves ETH ETF then they must be some more stuff behind the scenes that we can see right now.

That's right but bitcoin already being a real example about the consensus, It's just a critical part on bitcoin. The consensus will based on the public voting. It can be a critical point for bitcoin itself. The block votes is a real evidence how bad consensus is.

I think some of the tradings too are that happens almost everyday is is sometimes managed improperly. And sometimes if there is a government agency intervening then you would know that a some of the budget is not directly being recieved by any of that agency. also some malpractices that's being mismanaged exchanges have the ability to create a tremendous impact on the cryptocurrency and the price discovery.

I think ETH probably does have a better chance, a big reason is as we have seen previously with the roll back it is far more centralised than bitcoin ànd doesn't carry as much baggage so it could be there before bitcoin.

A coin that had hardforked in the last year, as well as rising about 20fold, and being hacked, doesn't seem like a great basis for an ETF.
The problems that the SEC saw with Bitcoin are most probably also true of ETH. Do we know that China isn't the major miner? I would assume that they are.

I don't think that ETFs are good long term for Crypto, much like SLV and GLD for the precious metals, but if and when an ETF is accepted, it will have to be for Bitcoin.

Doesn’t bitcoin already have an ETF ? I mean that facebook twins guys have been going for it for a long while and they seem to be getting more and more successful to getting to a point where they have been discussing this top people.
I think bitcoin EFT is either under works right now or at least close by. ETH has a long way to go and a lot of hands to grease before it can have an EFT.

To me, even the basis of the argument is faulty by assuming that the non-currency feature of ETH will make it have a leap over bitcoin in the ETF acceptance in which majority of people outside the crypto community does not even know anything about ETH the only currency that rings a bell is bitcoin and the majority that have heard about it are only using it as a medium of exchange. If any cryto will be accepted by ETF that will pave way for others, it will be bitcoin.

You'll see neither anytime soon. The prospects of BTC getting an ETF will pump it no doubt but reality is that BTC or any crypto will not get an ETF. The only way for an ETF is regulation and we do not have regulated markets we will likely NEVER have regulated markets.

Anyhow, I'm here because these markets are not regulated. We don't want regulation. Trust me, it would be very bad for crypto currencies.

One of the reasons for which bitcoin got denied is because too much of it's volume is happening on shady exchanges. So a real price discovery is difficult.
Also ethereum is regulated in us by NYSDFS. The only reason for eth to get denied is the fact that, like bitcoin, a big part of it's volume is traded on shady exchanges, but this isn't for ethereum as big of a problem as it is for bitcoin.

But i'd say chances for ethereum to get approved are x2, compared to bitcoin. Also ethereum is becoming the de facto standard for what a "blockchain" is with EEA.

Regulation is actually good. Would reduce the chances of scammy projects to attract dumb money.

Good points. Also there are projects in Ethereum that issued their own coins that might be something the SEC would not approve of. Those coins are very speculative with no use in the real world.

Didn't the SEC mention the lack of regulation and possibility of price manipulation as one of the reasons? This makes any crypto ETF highly unlikely. If anything, Bitcoin will be the first ETF.

Do not think that Etherium can beat bitcoin to an ETF approval by SEC.  Although Eteim is a trustred altco and there is still good potential to the price of Etherium, people are also like to invest in etherum but still it cannot compete with  bitcoin and hope that bitcoin will remain as number currency of the world.

I Think Ether Will never beat Bitcoin, Bitcoins is more popular than any cryptocurreny
Bitcoin mark his name as no# 1 so never never bitcoin will down by any coins this is just my opinion  ;D ;D

We can see the centralization and great exchange rate of the eth this pass year we do not expect the growth in there price and now they are already successful but still not successful as bitcoin we can see the range of the bitcoin price in the ethereum price the difference was so obvious and obviously i dont think ethereum will beat bitcoin at all.

unless the ethereum team (who have a lot of money, and also gained a lot more money by the recent pump from newbies wanna be rich people) are planning to bribe SEC guys i can not see any other way that they accept their ETF in a million years.

I agree Bitcoin more popular, almost every layman who knows cryptocurrency is just a bitcoin.

I think they had a possibility, but for now ethereum had no capacity to beat the bitcoin in to ETF. However, if the ethereum were going to raised up the value in the market they had a chance to beat Bitcoin.

No chance in my opinion. Not because any reason in particular, just common sense. They have been trying a Bitcoin ETF for a long time. It makes sense that Bitcoin will be the first.

Now if you ask me if ETH is going to surpass BTC...? For me its clear, it's only a matter of time

And add to that forks and Vitalik CEO of ETH.
I would list ETH most likely on stock exchange not ETF.
ETH is much more problematic than BTC right now and same as BTC is not regulated.

Yes but what does Ethereum offer besides a potential for a more scandalous outcome if the SEC decides to charge the ICO in the platform as illegal investments? Also which big players are you talking about that have shown interest in ETH and what kind of interest did they show? Speculative interest?

It might easily happen, as Etherium serves an actual purpose. The bad thing about bitcoin is also, things like the recent hackers event.
Hackers lock out a computer, and then demand Bitcoins as payment, in order to unlock the computer. So the majority of people, only see Bitcoin mentioned alongside with computer viruses, hackers,...Hence the negative attitude might erupt, and prevent the acceptance.

We find out todau if the bitcokm etf will go through. Hopefully it does because it will give a huge boost to altcoins also. All altcoins should rise if btc rises. Gives more legitimacy to all coins

Probably not, an ETF requires measures to return the property to the owner in case of it being stolen (or hacked).

What actual purpose is Ethereum serving the world right now? What problems is it really solving?

Do not forget that hackers can also easily use Ethereum for their ransomware attacks. Maybe the reason why they are not doing it is because they think Ethereum is inferior to bitcoin. They are right in some ways.

A more fundamental question in my mind is why the ETF thing is so important, and another is how it's going to affect volatility. 

Are these ETFs considered derivatives?  Or are they shares in a fund that owns whatever crypto they represent?  I just don't see how they're beneficial.

An ETF approval would just allow Bitcoin (or whatever else was approved) to be used as a mainstream investment. This increase stability and add a little legitimacy, but overall it won't make or break Bitcoin.

Speaking of how can they be considered, will the SEC or any government regulator not question the legality of Ethereum? It would be very entertaining to see Vitalik go inside the SEC to apply for an ETF approval and be escorted out of there with handcuffs and go straight to a jail cell.

I think when the time is right for a crypto-based ETF, the winner will be whoever is next up in the pipeline for approval.  It's a long process.

Bitcoin ETF "was denied as a result of lack of regulations within the foreign Bitcoin market". If bitcoin ETF was rejected based on that, I would think the same rationale can be applied to Ethereum. The eth market is definitely unregulated and cannot be controlled by any single jurisdiction in my opinion, the same way bitcoin is.

I don't think that SEC will approved any ETF for either bitcoin or ethereum.  Centralized/De centralized, they don't have a full trust on the system. Another reason that won't allow it is the unstable price of it. They can easily think that it can be manipulated by someone from behind. Well, they can try to apply for one, but I doubt it will even get approved.

yes. Ethereum will beat Bitcoin. They are a realy good kind of altcoin which can help many people and can maintain a high number of transactions everyday

Yeah I also think ETF will never approved any of crypto coins they are not ready to accept crypto currencies and they don't see the potential in it and crypto coin is unstable, even the bitcoin is not being approved, so it is a small chance ETH will be approved, but if it's ​approved then we will see the new chapter of alt coin, we will see the rivalry between bitcoin and ETH

There may be a chance, especially if cryptos become more mainstream; although if they do, then both BTC and Ethereum will get accepted at once.

This is the smartest answer in here. Also Ethereum has many illegally issued tokens inside the platform itself. The Ethereum Foundation could also be charged with running an illegal issuer of 3rd party securities on top of the charges on issuing ETH.

It is a legal quagmire.