MicroStrategy founder and executive chairman Michael Saylor has notably changed his tune on spot Ethereum exchange-traded funds (ETFs), arguing that the recent approvals from the United States Securities and Exchange Commission are only good news for Bitcoin (BTC) as well.

Ether ETF Is Good For Bitcoin

Bitcoin bull Michael Saylor has suddenly made a bullish statement regarding spot Ethereum exchange-traded funds.

In a recent interview with Bitcoin podcaster Peter McCormack of the What Bitcoin Did podcast, Saylor shared his thoughts on the recent approval of eight ETH ETFs by the Securities and Exchange Commission and how these new investment vehicles would impact the crypto industry. The MicroStrategy founder believes the SEC’s nod to Ethereum is a bullish development for Bitcoin as it improves the political power of the alpha cryptocurrency. 

“Is this good for Bitcoin or not? Yeah, I think it’s good for Bitcoin, in fact, I think it may be better for Bitcoin because I think that we are politically much more powerful supported by the entire crypto industry,” Saylor opined.

In his belief, a spot ETH ETF serves as an additional “line of defense” for Bitcoin, thanks to Ethereum’s huge user base. Saylor noted that the new Ethereum-based products would “accelerate institutional adoption,” as traditional investors previously on the sidelines will now recognize cryptocurrency as a legitimate asset class. 

Moreover, the MicroStrategy exec noted that investors will distribute capital across the various cryptocurrencies, but Bitcoin will still receive the lion’s share of allocated funds as the market leader.

“I think mainstream investors will say oh there is a crypto asset class now, maybe we’ll allocate 5% or 10% to the crypto asset class, but Bitcoin will be 60% or 70% of that,” Saylor proclaimed.

From Critic To Buyer?

Saylor admitted his view on Spot Ethereum ETFs has changed, given he previously thought the chance of SEC giving the products the regulatory blessing was quite slim.

“Two weeks before, the world looked like Bitcoin was going to be the only asset securitized and offered as a spot ETF by the Wall Street establishment and it was going to spread as the one legitimate crypto asset,” he posited.

Saylor had previously predicted that Wall Street would never accept Ethereum since it is very “clear” that the second-largest crypto is an illegal, unregistered security. He claimed that Bitcoin was the only “institutional grade crypto asset.”

Saylor’s U-turn on Ethereum has not gone unnoticed by crypto community members, with some questioning whether the serial Bitcoin investor could soon start scooping up Ether also.

---

Filed under: Bitcoin - @ May 27, 2024 10:02 pm