The president of Ava Labs believes that approval of a spot market Bitcoin (BTC) exchange-traded fund (ETF) would likely lead to the launch of similar products for other digital assets.

In a new interview with Bloomberg Crypto, John Wu, president of Avalanche (AVAX) development firm Ava Labs, says that he believes the first product to launch after a spot market BTC ETF approval would be an Ethereum (ETH) spot market ETF, followed by other types.

“My prediction is that after there is a Bitcoin ETF, shortly you’ll see Ethereum. And even better, you’re going to have – a big trend in ETFs right now are active managed ETFs – actively managed ETFs for the crypto asset class, and then you’re going have things like Avalanche in there and you’re going to have things like Chainlink going in there and then all of a sudden it’s a whole index of assets in the crypto space.”

Wu also says that he believes the latest Bitcoin rally was ignited by more favorable macroeconomic conditions for risk assets along with the prospect of an ETF approval for Bitcoin as soon as next month.

“The market structure is not fully repaired. However, the reason why it’s gone up so much this year is because the macro conditions, or the perception of it, has changed, the anticipation of a ton of liquidity with the ETFs coming into the space, and I think people now realize that the fundamentals of real business use cases are actually happening.”

According to Wu, traditional finance entities, who are currently sitting on the sidelines, will likely pour huge amounts of liquidity into Bitcoin ETFs.

“Some of this run is obviously front running the anticipation of ETFs capability. But like I said before, there are people who just, and institutions, who cannot buy it until it actually becomes an ETF. So unlike other securities or stocks or commodities or art, they can’t completely front run the news here because literally you just fundamentally cannot buy it until the actual ETF.”

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The post Approval of Spot Bitcoin ETF Will Usher In Similar Products for Other Cryptos, Says Ava Labs President John Wu appeared first on Crypto News Australia.

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Filed under: Bitcoin - @ December 8, 2023 1:22 pm