Michael Saylor supports Ethereum ETFs as useful for Bitcoin
Michael Saylor, founder and CEO of MicroStrategy, recently revealed a change in position regarding Ethereum exchange-traded funds (ETFs).
In a recent interview with Bitcoin podcaster Peter McCormack, Saylor said the US Securities and Exchange Commission's (SEC) approval of eight ETH ETFs is good news for Bitcoin. Thanks to Ethereum's large user base, he believes that Ethereum ETFs can serve as an additional line of defense for Bitcoin.
TLDR
MicroStrategy founder Michael Saylor now sees Ethereum ETFs as beneficial to Bitcoin, potentially boosting institutional adoption. Saylor believes that Bitcoin will receive most of its allocated funds from investors as the market leader. Microstrategy is considering adding Ethereum to its cryptocurrency portfolio, marking a strategic shift for the company. Global Bitcoin ETF holdings have surpassed 1 million BTC, with US-based ETFs being the largest contributors. Strong institutional interest in Bitcoin ETFs could cause a supply crunch and have a positive impact on the price of BTC.
Saylor said the approval of the Ethereum ETF will accelerate institutional adoption, as previously hesitant traditional investors now recognize cryptocurrency as a legitimate asset class.
Major investors expect to allocate a portion of their funds to the crypto asset class, with Bitcoin receiving the majority of allocated capital as the market leader.
Saylor's opinion on Ethereum ETFs has been updated. A few weeks ago, the SEC predicted that it would classify Ethereum and other major cryptocurrencies as securities, which would likely be approved for spot ETFs. However, recent comments suggest a change in attitude.
This change in position has led to speculation that MicroStrategy, a major bitcoin investor, may consider adding Ethereum to its cryptocurrency portfolio.
Sources confirm that the company's interest in Ethereum will not affect its ongoing Bitcoin strategy, and MicroStrategy plans to continue growing its Bitcoin holdings.
In related news, Michael Saylor celebrated a major milestone in the Bitcoin ETF platform.
It revealed that 32 global Bitcoin ETFs (exchange-traded products) have accumulated more than 1 million BTC in reserves, with US-based ETFs being the biggest contributors.
Leading the pack is Greyscale's GBTC ETF, followed by BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Bitcoin ETF.
The strong institutional interest in Bitcoin ETFs could be a sign of future Bitcoin price trajectory.
With large amounts of BTC locked up in these ETFs, a supply crunch could occur, which could lead to a rebound in Bitcoin's value.
While the future is uncertain, the changing attitudes of influential figures like Michael Saylor and increasing institutional interest suggest that the market is maturing and gaining mainstream acceptance.
