The developer of the MetaMask wallet, Consensys, sent a letter to the US Securities and Exchange Commission (SEC) in which it supported the idea of launching spot Ethereum-ETFs. The company believes that this product is more reliable than its Bitcoin-based counterparts.
“The implementation of the Proof-of-Stake (PoS) concept matches and exceeds the security of the Proof-of-Work (PoW) underlying the Bitcoin network, on which the ETFs already approved by the Commission are launched,” the letter says.
The company emphasized that the Ethereum blockchain has built-in mechanisms to combat manipulation and fraud. In addition, the letter highlights some of the structural benefits of this solution, namely:
- fast finalization of blocks;
- a randomized review process that eliminates the possibility of central influence;
- a deterrent in the form of fines for validators;
- increased safety and environmental benefits.
“We urge the SEC to recognize the advanced security measures inherent in Ethereum's design that not only meet, but exceed those built into Bitcoin-based exchange products,” the company said.
