"Creators Say" is a dialogue column launched by Foresight News. We will ask outstanding creators selected every month about hot market topics and compile the collected results into articles, draw on opinions from all sides, and discover more in-depth thinking.
Written by: Foresight News Outstanding Content Creator of May 2024
Organized by: Foresight News
On May 23, local time in the United States, the U.S. SEC approved 8 19b-4 forms for Ethereum spot ETFs, which is the second milestone event of the year after the approval of Bitcoin spot ETFs. The softening of regulatory attitudes is undoubtedly another catalyst for this round of bull market, but the market reaction is unexpected. Can this wave of positive news allow Ethereum to take over and lead the bull market to prosperity?
The theme of this issue of "Creators Say" is "Spot ETH ETF is approved, can Ethereum lead the bull market?" We invited LD Capital, Web3 Xiaolu, Eureka Partners, Block unicorn, inpower Wang Jun, Mankiw Blockchain Legal Services, Xiaozhu Web3, Tom Analysis and LFG Labs, who were on the Foresight News Outstanding Creators List in May 2024, to join the discussion.
Regarding the topic of "ETH ETF", we raised five questions: "Why did the US SEC suddenly change its attitude?", "Why is the market reaction to this good news far less than that of BTC ETF?", "What impact will the recent Ethereum Foundation controversy have?", "Which ecosystems will benefit from this?" and "Recent investment strategies". The following are the answers we collected:
1. The spot ETH ETF was approved, and the US SEC suddenly changed its attitude. What do you think is the reason? From a regulatory perspective, what impact does this have on the crypto industry?
LD Capital: Regulators and politicians are unpredictable. Judging from the position of ETH CME, it increased from 225,900 pieces on May 20 to 319,000 pieces on June 6. The time span for the significant increase in positions to occur is short, and it is also It shows that previous institutional bets on ETH ETF were not active, and there were not a large number of long bets in advance. Therefore, the sudden change of the SEC is influenced by political factors. At the same time, FIT21 (main content is to establish a system to regulate the US encryption market, set consumer protection measures, designate the Commodity Futures Trading Commission (CFTC) as the main regulatory agency for digital assets and non- The passage of the Securities Spot Market Supervisor) bill by the House of Representatives also shows a signal of loosening of encryption supervision at this stage. Although this bill still needs to pass the Senate, presidential action, etc. to officially become law, and on June 3, Biden vetoed SAB121 Therefore, the FIT21 bill is also likely to be overturned in the subsequent process. The political game before the election will continue to have a turning impact on the future of the encryption market. However, from a regulatory perspective, the passage of the ETH ETF helps it get rid of the disadvantages of years of uncertainty about the nature of securities. It is also a good thing for most tokens that previously had vague security definitions.
Web3 Lawyer: The reasons for the promotion of BTC ETF at the beginning of the year were 1) Garyscale's victory in the case and the pressure from the court; 2) BTC's own non-security attributes, 3) BTC's regulation in futures, and 4) the promotion of traditional finance such as Blackrock.
As a result, SEC Chairman Gary Gensler cast a very reluctant vote and approved the BTC ETF.
The same reasoning can be applied to ETH ETF. ETH may be identified as a security. We have also seen the SEC investigating the Ethereum Foundation. The SEC has also issued various Wells Notices to exert regulatory pressure on Uniswap, Robinhood, etc.
The real change in American politics is 1) the advancement of the US election (American Crypto Holders account for 15% of the US population), 2) Trump’s Pro Crypto style, and 3) the support of traditional finance.
The approval of the ETH ETF will have a profound impact on the crypto market, marking the mainstream's recognition of crypto assets (perhaps more at the investment and asset allocation levels), as well as the mainstream traditional finance's in-depth exploration of blockchain to transform traditional finance (the realization of Blackrock's tokenized funds, DTCC's exploration of the possibility of blockchain tokenized securities settlement, and the adoption of blockchain payment settlement for cross-border payments).
Eureka Partners: The recent quietness of the crypto market has shifted the attention of market users to the macro market. For ETH, the biggest controversy is whether ETH is a commodity or a security, which is a matter of debate between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The FIT21 Act was passed the day before the approval of the ETH ETF, which identified ETH as a commodity, so the ETH ETF became very clear.
From a regulatory perspective, the approval of the ETH ETF means that the United States has reached a consensus on ETH, that is, ETH that is not used for pledge is a commodity, and ETH that is used for pledge is a security. The impact of this on a series of subsequent US policies will become clear.
Block unicorn: First of all, this shift is a consensus reached by the Democratic and Republican parties in the United States, which has determined that cryptocurrency can bring benefits to the US government and has accelerated the speed of SEC approval. Secondly, both the Democratic and Republican parties have used encryption as a donation for the presidential election, which is an important move in the history of cryptocurrency. In the future, it will further attract more people to join this industry. The presidential election can indirectly affect one billion people around the world. If it only attracts 50 million new people to join this industry, it will also have a very large impact on the volatility of this industry.
inpower Wang Jun: I think it is mainly to win over crypto voters. Currently, the main leaders of the SEC are all Democrats, but they adopt a conservative strategy in crypto policy.
It is said that there are currently 50 million voters in the United States who are crypto users, and Trump is now actively trying to win over this group of voters.
In this context, the Democratic Party should also take positive measures and not want to give up this part of the votes.
Mankiw Blockchain Legal Services: If you can’t beat them, join them. According to statistics, there are more than 50 million crypto asset users in the United States. Regulators including the SEC should understand that this trend cannot be stopped. Instead of letting other governments take advantage of the future trend, the United States should do it itself.
From a regulatory perspective, this allows mainstream virtual currency projects to get off the ground without any problems. At the same time, it also serves as a reminder to other blockchain project parties that it is okay for projects to issue tokens, but the compliance fees should be reduced.
Xiaozhu Web3: First of all, I think it is only a matter of time before the ETH ETF is approved. ETH has always been the representative of blockchain 2.0 and has enough consensus in the currency circle. Secondly, as for the sudden change in the attitude of the US SEC, I personally think that there are both political reasons (which will not be explained in detail here) and the reasons for the previous approval of the Bitcoin ETF. The approval of the Bitcoin ETF must have done a detailed investigation of the entire crypto market. We have an old saying, "consensus is value." The consensus of BTC/ETH can be said to be indestructible. In fact, except for BTC/ETH/stablecoins, all others are counted as altcoins. ETH has been running for almost ten years without any major failures, and has incubated revolutionary products such as DeFi, which has expanded the crypto market. Therefore, the sudden change in the SEC's attitude may be a recognition of ETH's position in the crypto market. Finally, from a regulatory perspective, it is definitely a good thing for the crypto industry and a signal of recognition by the mainstream market. We can also see that Hong Kong, China is also loosening up a little and taking the lead in launching the ETH ETF, but currently only BTC/ETH is benefiting. Some people comment that this is a round of ETFs. Bullish, it has no major boost to altcoins, but I think they will definitely benefit together in the future. However, it will take some time for more other cryptocurrencies to be recognized by the mainstream market.
Tom Analysis: The Hong Kong spot Ethereum ETF was listed in April, and the US Ethereum ETF 19b-4 document was quickly approved. It is expected that there is a push from the top behind it, which shows that under the global geopolitical competition, the governments of various regions are competing for the encryption ecology and the minds of encryption users. Especially as the US election is gradually heating up, the Republican Party has always been friendly to the encryption industry, and Trump has clearly accepted encryption donations; and the younger group of cryptocurrency supporters is also a vote bank that the Democratic Party needs to win. From this perspective, the sudden change in the attitude of the US SEC is understandable.
From a more macro and long-term perspective, the U.S. financial regulatory system has a strong reference significance globally, and as a test field in mainland China, Hong Kong's policies can also radiate the financial landscape of the Chinese community. The rapid approval and recommendation of the Ethereum ETF will be an important step in further legalizing cryptocurrencies in the global financial system, and will continue to promote crypto assets into the allocation sequence of mainstream investors, which will definitely be a lasting and long-term benefit.
LFG Labs: The election year is definitely a key factor. For the United States, the group that directly or indirectly holds cryptocurrency has become a force that cannot be ignored, especially when the poll data is tight. The "critical few" are very popular, as can be seen from the passage of the FIT21 bill at this time point.
The loosening of supervision at the administrative and legislative levels has also prompted a shift in supervision. Regardless of the actual subsequent direction, this is a turning point for crypto assets to further enter the mainstream vision and obtain a legal and compliant framework.
2. The market's reaction to the good news about ETH ETF is far less than that of the previous BTC ETF. Why? Do you think the main theme of this bull market will return to Ethereum?
LD Capital: Traditional institutions are more familiar with and recognize BTC. There are also surveys showing that the net inflow of funds after the official approval of ETH ETF may be less than 20%-30% of BTC. ETH will usher in the main theme in the middle and late stages of the bull market. In the short term, BTC is still very strong. This can also be seen from the term structure of the options market and the forward exchange rate of ETH/BTC, which still indicates that BTC is more bullish in the longer term (end of the year).
Web3 Xiaolu: The asset properties of BTC and ETH are essentially different. Traditional capital can accept BTC as a tool for storing value, but may not necessarily accept this property of ETH.
Given the relative market size of ETH and BTC and the difference in institutional demand for these assets, flows may be disappointing. For example, the popularity of the US ETH futures ETF in October 2023 was lower than expected; the Hong Kong spot BTC ETF has an AUM of approximately $239 million, while the ETH ETF has an AUM of $41 million, a ratio of approximately 6:1. The ratio is similar for Canadian spot ETFs, with AUMs of 2.7 billion Canadian dollars and 450 million Canadian dollars for BTC and ETH, respectively.
Eureka Partners: The main reason is social consensus. The purpose of ETF is to allow more users in traditional industries to buy and sell BTC like stocks. For users in traditional industries, the social consensus of BTC will be much stronger than ETH. After all, everyone’s market perception of Crypto cannot be circumvented by BTC.
We at Eureka Partners believe that the bull market is actually a logic of the main upward trend, that is, the market narrative will show a cyclical change. As an ecological market that still has great potential, Ethereum is bound to burst out with a series of good projects and voices.
Block unicorn: First of all, after the Bitcoin ETF was listed, everyone had no doubts about the Ethereum ETF being listed. People in the industry had already bought Ethereum during the Bitcoin listing period, and these existing funds did not cause the price of Ethereum to rise in the past period of time. The news of the accelerated approval of the Ethereum ETF attracted a lot of unexpected new funds from the industry, causing the price of Ethereum to explode.
Secondly, some time ago, or recently, because Ethereum did not rise to a state that they were satisfied with, they began to feel disgusted again. I think most small retail investors and large investors must have enough patience to wait for Ethereum. At present, the financial infrastructure of our industry is almost monopolized by Ethereum. The operating logic of the whole world is that the economic movement of all industries is almost inseparable from banks. Ethereum has the most advanced financial infrastructure and innovation in the entire industry. If ETH rises, it can benefit the entire industry. The size determines that Ethereum has such a strong energy to drive the market.
inpower Wang Jun: It’s not worse, it has increased by about 20% due to this favorable impact. The previous increase in BTC’s price was not entirely affected by ETFs, but was caused by multiple factors such as halving and Bitcoin ecosystem.
In fact, the ETH ETF has not been approved yet. Half of the products will be put on the shelves after approval.
Personally, I think the approval of the Ethereum ETF is more beneficial to the entire crypto market. For example, many people are now paying attention to the progress of Solana’s ETF.
Regarding the main theme of this issue, I personally believe that mainstream capital is actually paying attention to large-scale application scenarios, which have relatively high requirements for the performance chain.
To be honest, I feel that the gap between Solana and Ethereum may not be that big now. This is related to the separatist warlords of the second layer of Ethereum. If they cannot form a joint force, they may be surpassed by Solana.
Mankiw Blockchain Legal Services: The first effort is strong, the second is weak, and the third is exhausted. The same is true for virtual currency ETFs. Investors are not so fresh about the story of the Liangshan recruiting. This round of bull market will not return to Ethereum because the story is old and the innovation is weak. From the perspective of entrepreneurship, Ethereum is already a 10-year-old organization.
Xiaozhu Web3: First of all, if altcoins are separated from the market, BTC ETF is approved and BTC soars, opening the crypto bull market. ETH ETF is approved and ETH soars, reversing the ETH/BTC exchange rate. Other altcoins do not have the benefit of ETF, so it is understandable that they do not rise. The reason why the reaction is far less than the previous BTC ETF approval is because when BTC ETF was just approved, the market would have an expectation that a large amount of funds would enter the crypto market and altcoins would also rise. Therefore, that wave of altcoins also generally rose several times. As a result, funds only entered BTC, and many altcoins fell back to the level before BTC ETF was approved. Therefore, I think it is normal that there was no big reaction to the approval of ETH ETF. As for whether the main theme of this round of bull market will return to Ethereum, I hope it will, but this round of ETF narrative, whether it is Layer2 or Restaking, lacks some practical applications, and does not have the amazing feeling of DeFi in 20 years. It will still require a "singularity moment" for a truly practical application to emerge in order to better play the main theme of this bull market.
Tom Analysis: The market's current reaction to the Ethereum ETF is relatively small. I think there are several main reasons:
1) After the Bitcoin ETF was approved, the market had already implicitly anticipated the approval of the Ethereum ETF. The Ethereum price started to rise in October 2023, from US$1,600 to around US$2,400 in early January 2024. It then rose with Bitcoin to over US$4,000. The expectation for the Ethereum ETF was an important driving force.
2) Currently, only the Hong Kong Ethereum ETF is officially listed and traded, but because mainland users cannot purchase it and there is a lack of incremental buying, its trading volume and market value are relatively small. According to SoSo Value data, the Hong Kong Ethereum ETF has been listed for 25 trading days, with an average daily trading volume of only US$1.43 million; the total Ethereum locked volume of the three Hong Kong Ethereum ETFs is only 14,000, and it also supports physical subscription, and has not been able to replicate the US Bitcoin Ethereum path to bring a large amount of buying to the chain.
3) There is another small reason. Currently, neither the Hong Kong Ethereum ETF nor the US Ethereum ETF that is expected to be approved supports staking income. As a result, for users who are able to hold coins, the annualized rate of return of holding ETFs is about 3 percentage points lower than that of holding coins directly.
LFG Labs: If we look at it from a superficial perspective, the Bitcoin ETF took about half a year from the beginning of its development to its final launch, considering the rising market trend. So it is not ruled out that Ethereum will also take small steps and move fast. Of course, if we are a little more conspiracy-minded, we may even be tempted to believe that the market expects (insider information) that there is no hope of passing this year.
I think Ethereum is still the main axis of innovation in the Web3 ecosystem. However, in terms of incremental users and equal benefits, other ecosystems in the current cycle have taken the lead, making Ethereum a little lonely.
3. The Ethereum Foundation has been controversial recently, and some people believe that it has become a burden to the Ethereum ecosystem. Including the core developers making money part-time and Vitalik's absolute influence, what impact do you think these have on Ethereum's compliance route, the entry of traditional institutions, and the broader prospects?
LD Capital: The Foundation will still play an important role in the development of Ethereum, but from the perspective of the Foundation as a participant in ETH as a secondary asset, regular operational selling pressure and capital participation attributes caused by political stances may cause it to face suppression from competitors such as Solana.
Web3 Xiaolu: A relatively young public chain foundation (more like a startup) may be able to meet the high growth needs of users, who tend to link price growth with the success of the foundation's governance. The Ethereum Foundation is a relatively long-running institution, and governance issues (midlife crisis, growth bottleneck period) are inevitable on the path to decentralization. This is a systematic project, including transparency of mechanisms, terms of office, flow of rights, etc.
Eureka Partners: Vitalik and the Ethereum Foundation have always been considered to be the more centralized points in the current Ethereum ecosystem, and they have a lot of say in the future development trend of Ethereum. But this is actually a necessary process. The existence of Vitalik and the Foundation is mainly due to the imperfection of the current infrastructure. Just like a child learning to walk in Handan, we all need to make some good suggestions in the early stage to ensure that the development path will not go astray. Therefore, so far, Vitalik and the Foundation have played a more positive role in promoting future compliance risks and the entry of traditional institutions.
Block unicorn: First of all, the Ethereum Foundation is not the only one that has people taking part-time jobs to make extra money. People from the SOL Foundation used to tout a certain MEME coin every day, and no one came out to criticize it.
Secondly, as Ethereum gradually becomes decentralized, most people in the foundation will become less important, and only a few foundation members can have an impact on the industry. After traditional institutions enter the market, these foundations will become less and less important, and traditional institutions will compete for the right to speak in the industry and gain more benefits.
inpower Wang Jun: Personally, I think the influence of the Ethereum Foundation is not as absolute as before, including Vitalik Buterin’s absolute influence is not as strong as it was a few years ago.
This is actually a good thing, it is the experience of decentralization.
In the long run, whether Ethereum can maintain its current position requires it to maintain its advantage in the competition for the implementation of application scenarios.
The Ethereum Foundation may need some breakthroughs in coordinating second-layer or third-layer collaborative competition.
However, the future is unpredictable, and the current application scenario landing process is still relatively difficult. In the past few years, the main interaction scenario on the chain is trading, and the rich ecosystem of Ethereum provides more trading scenarios.
To be honest, in the future, the implementation of large-scale application scenarios may determine the success or failure of the public chain ecosystem.
Mankiw Blockchain Legal Services: Big company disease has already appeared in Ethereum, whether it is the people in the foundation who are not doing their job or the political correctness that the leader constantly preaches to the outside world. Ethereum uses companies to sell tokens and non-profit organizations to manage tokens and ecological construction. The compliance model is still of reference significance for blockchain coin issuance entrepreneurs ten years later.
Xiaozhu Web3: This is actually the biggest difference between Ethereum and Bitcoin, or the biggest difference between the public chains of all smart contract platforms and Bitcoin. Bitcoin itself is more of a value storage, or a narrative of digital gold, and does not actually need too many other functions, while the public chain of the smart contract platform plays the role of a "world computer". The technology needs to be continuously iterated and upgraded, and developers need to be continuously attracted to develop on their platforms. Therefore, it is inevitable that there will be roles like foundations as the leaders of the development direction, which will definitely not be a burden on the Ethereum ecosystem. As one of the largest and most open organizations in the crypto world, the Ethereum Foundation has always come from controversy. The public chain foundations of other smart contract platforms have no controversy. One aspect is that they are too small, and the other aspect is that they are too centralized. However, the problems faced by the Ethereum Foundation today, whether it is the core developers working part-time to make money or the absolute influence of V God, are problems that other foundations may face in the future. I believe that the Ethereum Foundation is an anti-fragile organization, and it will also come out of the controversy this time. Moreover, the development of Ethereum is not completely controlled by the Ethereum Foundation, but also by the power of the vast developer community. This is the charm of open source and decentralization. As for the impact on Ethereum's compliance route, the entry of traditional institutions and its broader prospects, it still depends on the decision of the Ethereum Foundation and the attitude of the entire developer community. It is too early to talk about this now.
Tom Analysis: The approval of the ETF and the entry of traditional financial institutions will have a huge impact on the existing Ethereum ecosystem. It will also gradually weaken the influence of the Ethereum Foundation and Vitalik, and form a new check and balance. Overall, it will allow the entire ecosystem to break away from the unipolar state of the Ethereum Foundation, further expand the diversity of the ecosystem, and have a better prospect in the long run than in the past. After the Ethereum ETF is approved, we at SoSoValue will also launch the relevant dashboard as soon as possible, providing data such as the proportion of ETF holdings, so that everyone can also see the impact of the entry of traditional financial institutions on the Ethereum ecosystem.
LFG Labs: For the current Ethereum ecosystem, Vitalik and EF are both necessary options. One is responsible for subtly controlling the direction of "orthodoxy", and the other is responsible for collective efforts to promote implementation.
However, it remains to be seen what impact this decentralized but centralized structure will have in the eyes of sensitive regulators, especially at the sensitive node where the so-called ETF is seeking a breakthrough. Whether to promote "de-Vitalik and EF (Ethereum Foundation)" or not is not an easy choice to make.
4. After the launch of ETH ETF, which areas of the Ethereum ecosystem will benefit? What are the potential opportunities?
LD Capital: Leading MEME, Modularity, Restaking, etc.
Web3 Xiaolu: There are not many new narratives on the Ethereum ecosystem. With the approval of the ETH ETF and the continuous interaction between the chain and the off-chain, we are more optimistic about the landing of traditional financial tokenization. However, this is a long process and may not be seen in the short term.
Eureka Partners: The approval of the ETH ETF does not include the staking function, which is a good thing for the current Staking and Restaking fields in Ethereum. Since the issuer of the ETF cannot stake ETH, for Ethereum, which currently adopts PoS, it can guarantee the staking balance of the network to a certain extent, and avoid the situation where one party has too large a staking ratio and monopolizes the staking market.
Block unicorn: First of all, the entire Ethereum ecosystem will benefit, and the first thing to be affected is the price of Ethereum, followed by Ethereum DEX, lending protocols, etc. The second potential opportunity is RWA, which is the favorite entry point for traditional institutions.
inpower Wang Jun: After Ethereum went online, it was easier for traditional funds to enter the market on a large scale. This can be regarded as the official confirmation of the status of Dragon II.
But to be honest, I personally think that the price of Ethereum will be determined by capital flows in the short term, policies in the medium term, and application implementation in the long term.
Short-term factors are more complicated, and those who analyze K-lines may be more experienced. Anyway, I don’t pay much attention to them.
In the medium term, the Ethereum ETF is still good for Coinbase. If nothing unexpected happens, it will still have to use its shared supervision solution. From the perspective of Satoshi, the Ethereum second-layer Base chain may benefit a lot.
In the long run, I will pay more attention to the application chain scenarios for application landing. However, the competition among Ethereum L2 and Solana is becoming increasingly fierce, and it feels a bit like a group of heroes fighting Lu Bu.
Mankiw Blockchain Legal Services: The tokenization of traditional physical assets will benefit because these large institutions value security more than network efficiency. The combination of the financial sector and Web3 should be the most feasible scenario for Ethereum's current bull market.
Xiaozhu Web3: The ETF narrative is mainly about Layer2 and Restaking, which lacks some practicality. I am not looking at it from the perspective of the launch of ETH ETF, but from the perspective of practical applications. Layer2 is likely to have a "singularity moment", that is, a truly practical application, because Layer2 is essentially an Ethereum expansion solution that solves the problems of low Ethereum TPS and slow transaction confirmation. These problems restrict the development of the application layer. Users are still more accustomed to surfing in the high-performance but centralized Web2 world. Layer2 actually improves the user experience. Layer3, that is, the application chain, can be built on Layer2 to obtain a better user experience and provide soil for revolutionary applications. At present, the development of Layer2 still emphasizes the underlying technology, especially ZK technology. I certainly think that ZK technology is the end of Layer2 and the future of Ethereum, but if there is no application, the underlying technology is just a castle in the air, so I think the potential opportunities are more in the application layer, which can lower the user threshold and facilitate the large-scale adoption of blockchain, such as AA wallet, GameFi, SocialFi, etc.
Tom Analysis: After the ETF is launched, a large amount of OTC funds will enter the Ethereum ecosystem, which will have a great positive impact on applications in all directions within the Ethereum ecosystem. The most direct beneficiary may be the Defi ecosystem related to finance. For example, lending and other protocols will benefit from the appreciation of the underlying assets, thereby further expanding their scale rapidly. In addition, the RWA track of traditional asset on-chain will also receive more attention, and more forces from traditional finance will enter the market. Here I recommend that you pay attention to SoSoValue's RWA index. In recent months, the increase in the RWA track has been at the forefront, with an increase of 19.5% since the beginning of the year.
LFG Labs: The previous Bitcoin ecosystem may have a certain reverse reference significance, that is, if new funds enter the market, it may be a direct benefit to new scenarios and asset forms that transcend traditional DeFi, NFT and other DApp forms (such as ORDI to the Bitcoin ecosystem). For example, those consumer-oriented networks that can connect with incremental users and funds may reap the biggest dividends.
5. Has the ETH ETF changed your recent investment strategy? Can you briefly share the adjustments in your positions?
LD Capital: We are still optimistic about the trend of BTC in the near term. The main ETH-related holdings are actually the MEME leader PEPE which is still in the process of adjustment. In addition, there are some low-market-cap currencies with better chip structure in the Ethereum ecosystem lurking.
Web3 Xiaolu: The approval of ETH ETF marks the mainstream recognition of Ethereum. This recognition includes two aspects: 1) the commodity attributes of ETH itself and the investment attributes of ETH ETF, and 2) the security of Ethereum.
Security is reflected in the ability to accommodate financial capital. The BUIDL tokenized fund launched by Blackrock in March was built on Ethereum. In just three months, its scale reached US$460 million, ranking first in the US debt tokenization market. The tokenized fund of Ondo Finance built on Ethereum has also recently achieved a large increase in TVL, and $ONDO has also increased significantly, representing recognition from both traditional finance and the crypto market.
If blockchain can transform or gradually transform traditional finance, then whose chain will it run on?
Eureka Partners: There are not many adjustments in the position, and we still hold ETH firmly.
Block unicorn: With the acceleration of Ethereum ETF, I have become more inclined towards opportunities in the RWA track and transferred more funds to RWA in terms of positions.
inpower Wang Jun: Yes, the biggest change is that more positions are placed in Solana.
There is actually some consensus in the industry that Ethereum’s ETF will be approved, and it’s mainly a matter of time.
It will be more interesting to see who the third ETF is.
CNBC trading commentator Brian Kelly once said on the show that SOL will be the next crypto asset to become a spot ETF. ETH has not performed well for a long time and whether the Ethereum ETF is passed on May 23 is not the point. He believes that the correct transaction is to find the next crypto ETF asset, which is likely to be BTC, ETH, and SOL, which he considers to be the "Big Three" in this bull market cycle.
However, Bloomberg ETF analyst James Seyffart is less optimistic about the SOL ETF.
First, based on precedent, the SOL spot ETF is likely to occur several years after the launch of the futures ETF, under the supervision of the CFTC.
Second, the SEC has a different attitude towards ETH and SOL. In the lawsuit against COIN and Kraken, the SEC stated that Solana is a security.
James Seyffart believes that SOL's ETF road will be full of challenges, but the FIT21 bill may speed up the process. In addition, SOL ETF may be the most in-demand crypto asset besides BTCETH.
Mankiw Blockchain Legal Services: No, those who need to invest in BTC should still do so.
Xiaozhu Web3: I am a Builder & Holder of ETH. I have always held ETH firmly without any changes in investment strategy or adjustments to positions.
Tom Analysis: My personal investment strategy has not changed since the beginning of this year. I am optimistic about the macro narrative of "mainstreaming of the crypto market" and the overall industry beta it brings. Therefore, my positions are mainly concentrated in mainstream assets such as Bitcoin and Ethereum, which will bring huge capital increases due to ETFs. At the same time, I also allocate some core assets of RWA, Layer1, CeFi and other indexes according to SoSo's industry index.
LFG Labs: We are looking at some new application scenarios on L2, and are also increasing our positions in some basic DeFi protocols.
