Consensys, the developer of the MetaMask wallet, has sent a letter to the U.S. Securities and Exchange Commission (SEC) supporting the idea of launching spot Ethereum-ETFs. The firm believes that this product is more reliable than its Bitcoin-based counterparts.
Consensys highlighted in the letter that the implementation of the Proof-of-Stake (PoS) concept matches and even surpasses the security of the Proof-of-Work (PoW) that underpins the Bitcoin network.
The company emphasized that the Ethereum blockchain has built-in mechanisms to counteract manipulation and fraud. Furthermore, the letter underscores some structural advantages of this solution, including:
– Swift block finalization,
– A randomized verification process that eliminates the possibility of centralized influence,
– A deterrent in the form of penalties for validators,
– Enhanced security and environmental benefits.
The company urged the SEC to recognize the extended security measures inherent in the Ethereum design, which not only meet but exceed those embedded in exchange products based on Bitcoin.
Remember, in late March 2024, the SEC postponed decisions on most applications for spot Ethereum-ETFs. The final deadline for some of them is due at the end of May.
Experts evaluate the likelihood of launching this class of products differently. However, as shown by bets on the Polymarket platform, only a small number of traders believe in a positive outcome.
