According to U.Today, MicroStrategy co-founder Michael Saylor has expressed optimism about Ethereum exchange-traded funds (ETFs) during a recent appearance on the 'What Bitcoin Did' podcast. He predicts that these ETFs will play a significant role in accelerating institutional adoption of cryptocurrencies. Saylor believes that mainstream investors, who currently view crypto as a broader asset class, may be willing to allocate a higher percentage of their portfolios to it, potentially increasing from 1% to between 5% and 10%. He also anticipates that Bitcoin will account for up to 70% of that allocation as the leader of the crypto asset class.
Saylor further stated that the political power and user base of the entire cryptocurrency industry could serve as an additional line of defense for Bitcoin. In a surprising turn of events, several listing requests filed by Ethereum ETF issuers were approved earlier this week, despite predictions that the U.S. Securities and Exchange Commission would reject them due to lack of engagement, political pressure, and uncertainty surrounding the legal status of the underlying Ether token. Bloomberg ETF expert James Seyffart believes that Ethereum ETFs could meet approximately 25% of the demand for the Bitcoin ETFs that launched in January. However, it remains unclear when these Ethereum ETFs will begin trading, as the SEC also needs to approve corresponding S-1 registration statements.
In a change from his previous stance, Saylor, who had predicted that Ethereum would never gain acceptance on Wall Street due to its status as a security, now acknowledges the potential of the flagship altcoin. He had previously claimed that Bitcoin was the only 'institutional grade crypto asset.'