Earlier in May, Michael Saylor was confident that the SEC would soon crack down on major altcoins, potentially blocking the listing and trading of all spot ETH ETFs. His warnings sent tremors through the crypto community, fueling fears that Ethereum and other major altcoins would be classified as crypto asset securities under the SEC’s regulatory purview. 

However, in a dramatic twist, the SEC blindsided everyone by suddenly approving all ETH ETFs. Now caught off guard, Michael Saylor does a complete 180, retracting his earlier statements and embracing the SEC’s unexpected decision.

Saylor Changes Tune on ETH ETFs

“I think it’s good for Bitcoin; in fact, I think it may be better for Bitcoin because I think that we are politically much more powerful supported by the entire crypto industry,” Michael Saylor shared in a recent podcast, marking a dramatic shift in his stance on spot Ether ETFs. 

The MicroStrategy founder explained that the approval of eight spot ETH ETFs would “accelerate institutional adoption” and legitimize the asset class, instilling confidence in investors.

He reiterated that Bitcoin will continue to attract the lion’s share of investments, but the introduction of newer assets would encourage investors to diversify, even if only marginally.

Saylor acknowledged his change in perspective on spot Ether ETFs. He previously believed that Wall Street would not embrace Ethereum.

“None of [these tokens] will ever be wrapped by a spot ETF, none of them will be accepted by Wall Street, none of them will be accepted by mainstream institutional investors as crypto assets,” Saylor previously claimed. 

Saylor explained that just two weeks ago, the landscape seemed like Bitcoin would be the sole asset securitized and offered as a spot ETF by the Wall Street establishment. However, with the rapid changes in the market, his views have changed tune to reflect the new reality.

On the Flipside

Bloomberg ETF expert James Seyffart estimates that Ethereum ETFs might capture 20-25% of the investment compared to Bitcoin ETFs.

Analyst Eric Balchunas takes a more conservative approach, expecting a 15-20% range.
Many experts predicted a slim chance that the SEC would approve ETH ETFs in May, though they were optimistic about approval later this year.

Why This Matters

Michael Saylor’s harrowing predictions earlier this month stirred fear among the crypto community, especially as the market braced for a potential rejection of the ETH ETF approval. However, his sudden change of tune comes at a crucial moment and could help restore confidence among investors.

Source : DailyCoin / May 27, 2024