The SEC Opens Doors for Ether-ETF: Lado Okhotnikov on a New Era in the Relationship Between Traditional Finance and Cryptocurrencies

Lado Okhotnikov is a well-known investor and blockchain expert, founder and head of the Meta Force company, which is developing a unique metaverse.

Ether-ETF Approval: a Victory for the Crypto Community?

The SEC's approval of Ether-ETF raises a lot of questions. It is important to understand that SEC approval does not mean that Ether-ETF will launch tomorrow. The applicant company will have to go through a long paperwork, and the SEC will scrutinize every detail, which will take considerable time. Lado Okhotnikov analyzes the importance of this process for the crypto industry.

The market initially reacted to this news by falling rates of Ether and Bitcoin. This is a completely natural reaction. Once an ETF is approved, there is often a short-term correction. For Ether, the situation is aggravated by the fact that the approval was not final, but the correction soon gave way to growth. The market received a boost of enthusiasm.

Differences between Bitcoin and Ether-ETF

The situation with Ether-ETF is different from Bitcoin. The head of the SEC believes that all cryptocurrencies, except Bitcoin, are securities, which requires special permission for transactions with them. This has had a significant impact on the Ether-ETF approval process.

The Bitcoin ETF approval process resembled an information operation. Since early summer 2023, information about the approval process has been a major market driver. Positive comments from influential people caused the market to rise, while negative rumors caused it to fall. This created an atmosphere of constant anticipation and speculation.

SEC Chairman Gary Gensler openly expresses a negative attitude towards cryptocurrencies. Since its approval, he has made strong claims that Bitcoin is being used for money laundering, terrorist financing and other illegal activities. However, the ETF was approved, causing Bitcoin to triple. At first, the market reaction was muted, as it is now with Ether-ETF.

Lado Okhotnikov: SEC decision on Ether-ETF is a quiet revolution in the world of cryptocurrencies

Unlike Bitcoin-ETF, the approval process for Ether-ETF was devoid of intrigue and speculation. Claimants complained of a lack of feedback from the SEC, which operated in a “black box.” In spring of 2024, the SEC sent inquiries to several companies associated with Ethereum. The approval of Ether-ETF came unexpectedly when analysts were predicting another failure. After the emotional approval of the Bitcoin ETF, the process with Ether was quiet and routine. The SEC tried to create intrigue, but things did not go further than requests. Initially, cryptocurrencies were perceived as a threat to the traditional financial system, an alternative to fiat money. However, over time they began to be viewed as a new asset class. 

Change of mood

The approval of ETFs became a marker demonstrating a change in the attitude of elites towards cryptocurrencies. In the ideology proposed by Satoshi Nakamoto, cryptocurrency is an alternative to fiat, a “closing technology.” For cryptocurrency users this is attractive, but for banks, financial companies and governments it means a loss of huge revenues and control over the financial system.

Financiers no longer see cryptocurrencies as a threat to fiat. This change did not happen overnight. Cryptocurrency began to be perceived as an asset rather than a replacement for the currency itself. The Bitcoin ETF has secured this status.

According to Lado Okhotnikov: “Instead of a threat to the fiat system, the authorities view cryptocurrencies as a new tool for making profit.”

Lado Okhotnikov: CBDC and the future of crypto business

At the same time, states are working on creating their own digital currencies (CBDC). Unlike decentralized blockchain cryptocurrencies, CBDCs are entirely controlled by issuers. They lack anonymity, all transactions are transparent and can be blocked at the request of the authorities. Skeptics see CBDC as an excessive invasion of privacy.

Despite the growing acceptance of cryptocurrencies by the traditional financial system, they continue to develop as an alternative decentralized economy. The revolutionary nature of blockchain is to eliminate the subjective decisions, protectionism and unfair competition inherent in current economic models.

"Blockchain and cryptocurrencies have already passed the point of no return, after which it is almost impossible to ban or stop their development. We see how cryptocurrency is gradually integrated into the existing fiat system and turns from a threat into a useful tool. However, blockchain has already become the basis of many applications that in themselves add new qualities to the existing economy. Blockchain can become the foundation of a new economy, free from subjective decisions, protectionism and unfair competition,” notes Lado Okhotnikov.

Тhus, cryptocurrencies are gradually being integrated into the existing financial landscape. However, the revolutionary potential of blockchain to build a new economic paradigm still remains.

About company

Meta Force is a DeFi company developing sophisticated Metaverse, Lado Okhotnikov is a CEO of Meta Force. He is a publicist, libertarian, leading IT and crypto expert.

Based on Dan Michael’s materials

The head of Meta Force Press Center

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