Co-founder and former Chief Executive Officer (CEO) of MicroStrategy, Michael Saylor, showed support for approval Spot Ethereum ETFs. The crypto billionaire reiterated that the launch of Ethereum ETFs has been “good” for Bitcoin and the broader cryptocurrency market.
Ethereum Spot ETF Approval Is ‘Better’ for Bitcoin
In a recent interview with Bitcoin Gamblers Anonymous host Beagle, Saylor shed lightweight from his perspective the U.S. Securities and Exchange Agency (SEC) approval of Ethereum Spot ETFs and how this investment instrument will affect the cryptocurrency market.
The founder of MicroStrategy revealed that the SEC’s approval of the Spot Ethereum ETF was a great step forward for Bitcoin as it improves political power of the pioneering cryptocurrency. He noted that the Ethereum Spot ETF will serve as a “line of defense” for Bitcoin, he emphasized Extensive Ethereum user base and the broad support it enjoys from the entire crypto industry
Saylor also pointed out that Spot Ethereum ETFs could accelerate institutional adoption, increasing investor interest in cryptocurrency ETFs through diversification. This, in turn, can significantly impact Bitcoin price indicators, potentially increasing demand and triggering a cryptocurrency rally.
The MicroStrategy co-founder also revealed that prior to the SEC’s approval of Ethereum Spot ETFs, Bitcoin was viewed as the only asset not classified as a security, per the SEC decision approval of the Spot Bitcoin ETF on January 10. As a result, Bitcoin would be declared the only legal crypto asset in the industry.
However, with the SEC’s recent approval of Ethereum Spot ETFs, Saylor predicts a different outcome. He emphasized that the global crypto asset class will eventually be legitimized, backed by the world’s two largest cryptocurrencies, Bitcoin and Ether.
He also stated that this legitimization will enable broader acceptance of other aspects of the crypto industry such as decentralized finance (DeFi), NFTs, digital commerce and others, facilitating widespread acceptance, with Bitcoin leading this change as a leader in the crypto asset class.
Bitcoin price after SEC approval of Ethereum Spot ETF
On Thursday, May 23, the US SEC approved a critical rule change that would allow ETFs to hold Ethereum. This consent came after months of deliberation and constant delays from the regulatory agency.
Taking into account Ethereum’s implicit classification as a security by the SECmany cryptocurrency industry analysts, including Bloomberg ETF analysts James Seyffart and Eric Balchunas, have low expectations for regulatory approval of Ethereum Spot ETFs.
As a result, the cryptocurrency community was doubly shocked when the US SEC accepted Ethereum Spot ETFs. This approval significantly influenced the price dynamics of Bitcoin as a cryptocurrency recorded declines while excitement for the Ethereum Spot ETF has spread throughout the crypto community.
At the time of writing, BTC is trading at $68,613, down 0.96% in the last 24 hours. Cryptocurrency daily trading volume amounting to over $18.6 billion, increased slightly by 21.11%, indicating a slight boost investor confidence into cryptocurrency.
Featured image created with Dall.E, chart from Tradingview.com
