Sunday, December 22, 2024

Michael Saylor: Ethereum ETFs ‘may be better for Bitcoin,’ here’s why

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  • Michael Saylor makes a U-turn on ETH after ETF approvals. 
  • The executive said that the approval will further legitimize crypto assets. 

MicroStrategy founder and CEO Michael Saylor has changed his ‘no second best to Bitcoin’ rhetoric after the Ethereum ETF’s approval.

Commenting on the approvals, Saylor underscored the update as ‘good for crypto asset class’ but ‘better’ for Bitcoin [BTC]

‘Is this good for Bitcoin or not? It’s good for Bitcoin. In fact, it may be better for Bitcoin because we’re politically much more powerful, supported by the entire crypto industry.’

The ‘politically more powerful’ phrase may refer to the current political changes triggered by crypto regulations, the passage of the US CBDC ban, and the FIT21 Act.

Michael Saylor added that the ETH ETF approval will further legitimize the crypto asset class. 

Michael Saylor warm ups to ETH

Contrary to the above relative warm-up to ETH ETF approval, Saylor has always been a Bitcoin maxi and a critic of altcoins.

About two weeks ago, the executive believed that Bitcoin would be the only approved crypto asset with a spot ETF and backing of Wall Street and TradFi. 

The executive expected the SEC to reject the ETH ETFs. Here, it can be argued that Saylor changed his strict stance against other crypto assets after the ETH ETF approvals. 

However, his emphasis that BTC could benefit more from the ETH ETF adds to the divergent views on the topic. 

Some industry analysts, like Jim Bianco and Quinn Thompson, have reiterated that ETH ETF could draw inflows from spot BTC ETFs.

As a result, the ETH ETF launch could be negative to BTC. In fact, Bianco projected that ETH could even flip BTC before the next halving. 

However, Bitwise CIO Matt Hougan downplayed the ‘threat’ and mentioned that ETH ETF will hit billions but won’t match BTC. 

In the meantime, the recent positive regulatory relief and ETH ETF approvals saw BTC ETFs record positive net inflows last week.

According to AMBCrypto’s look at Soso Value’s data, the investment products saw a total of $819.5 million last week. 

It remains to be seen whether these BTC ETF flows will be affected by ETH ETFs when they launch and start trading. 

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