Michael Saylor, the Chairman of MicroStrategy, has stated that the U.S. Securities and Exchange Commission’s (SEC) approval of a spot Ethereum ETF is beneficial for Bitcoin. Saylor believes that this approval will draw more institutional investors into the cryptocurrency market, thereby bolstering Bitcoin's standing.
Spot Ethereum ETF to Attract More Investors to Crypto
In an interview with Beagle, the host of “Bitcoin Gamblers Anonymous” on X, Saylor shared his insights on the matter. According to the Bitcoin maximalist, the approval of a spot Ethereum ETF will enhance investor confidence and offer more choices within the crypto market. “I think the approval will legitimize the crypto asset class, supported by both Bitcoin and Ethereum ETFs,” Saylor remarked. “This move signifies that crypto is now recognized as an asset class, with Bitcoin leading the way.”
Saylor’s recent comments represent a notable shift from his earlier, more exclusive stance on digital assets that are not Bitcoin. Previously, he categorized Ethereum as a security, which led to backlash from the online community after his prediction against the approval of a spot Ethereum ETF proved incorrect. Many users on X trolled Saylor for his failed prediction.
Acknowledging the new development, Saylor emphasized that the approval of Ethereum’s ETF would ultimately strengthen Bitcoin’s position within the crypto industry. “It is good for Bitcoin. We are much more powerful when supported by the entire crypto industry. Ethereum, with its vast user base, provides another layer of defense for Bitcoin,” he added.
Accelerating Institutional Adoption
Saylor also pointed out that mainstream investors might begin to view crypto as a viable asset class, potentially allocating 5% to 10% of their portfolios to crypto assets, with a significant portion (around 60% to 70%) going to Bitcoin.
His projections on asset allocation are grounded in current market dynamics. Recently, the spot Bitcoin ETF market has seen substantial investor activity, marked by consistent net inflows and strong performances from major ETFs, with total inflows surpassing 15,000 BTC.
In conclusion, Saylor expressed that the approval of the spot Ethereum ETF is beneficial for the overall market. “I think this will accelerate institutional adoption and serve as a strong marketing boost,” he said. “It’s a new era, and we need to rethink our models to align with this evolving landscape.”
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