Key Points
- MicroStrategy CEO Michael Saylor changes his stance on Ethereum following its ETF approval.
- Saylor believes the approval will further legitimize cryptocurrencies, and could potentially benefit Bitcoin more.
Michael Saylor, the founder and CEO of MicroStrategy, has shifted his stance on Ethereum (ETH) following the approval of its ETF.
Previously known for his ‘Bitcoin only’ rhetoric, Saylor now acknowledges the benefits of the Ethereum ETF approval. He believes this development is a positive step for the entire cryptocurrency asset class, and may even be more beneficial for Bitcoin (BTC).
Evolving Views on Crypto
Saylor’s reference to being ‘politically more powerful’ could be linked to recent political shifts influenced by crypto regulations, the US CBDC ban, and the FIT21 Act. He also mentioned that the Ethereum ETF approval will further legitimize the crypto asset class.
Despite his newfound acceptance of Ethereum, Saylor has traditionally been a Bitcoin maximalist and a critic of altcoins. Just two weeks prior, he expressed the belief that Bitcoin would be the only crypto asset to gain approval for a spot ETF, with the backing of Wall Street and TradFi. He also anticipated the SEC would reject Ethereum ETFs.
Industry Reactions
Saylor’s assertion that Bitcoin could gain more from the Ethereum ETF has sparked divergent opinions. Analysts such as Jim Bianco and Quinn Thompson suggest that the Ethereum ETF could draw inflows away from Bitcoin ETFs, potentially leading to Ethereum overtaking Bitcoin before the next halving.
However, Bitwise CIO Matt Hougan downplayed this ‘threat’, suggesting that while the Ethereum ETF will undoubtedly attract billions, it will not surpass Bitcoin.
Following the recent positive regulatory relief and Ethereum ETF approvals, Bitcoin ETFs witnessed positive net inflows last week. Investment products saw a total of $819.5 million, according to Soso Value’s data. It remains to be seen how these Bitcoin ETF flows will be impacted once Ethereum ETFs commence trading.
