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Don't expect crypto ETFs to slow down after the adoption of spot currencies Bitcoin and Ethereum in the United States: Wall Street's “greed” is driving such products from time to time, according to Tether and WAX founder William Quigley. Decrypt this week.
Quigley predicted the rise of ETFs for other leading cryptocurrencies such as Solana and Cardano, driven by Wall Street's relentless pursuit of profits.
“Wall Street is greedy,” he said. “Every time Wall Street puts out a new product to sell to consumers, they can guarantee that if that product succeeds, there will be copycats. If Bitcoin ETFs failed, there would be no ETFs.”
He added that Wall Street likes “the next hot new thing” because it can talk to consumers and sell their products. But if momentum eventually slows, Quigley expects ETF providers to shift their focus to the next big trend.
We will continue to see new ETFs being launched unless there is a major reversal, he added. “Then, you'll see some of those ETFs get shut down by the firms that started them because of a lack of interest.”
The SEC's long-awaited approval of the Spot Bitcoin ETF in January marked a milestone in the integration of cryptocurrencies into mainstream financial markets. They allow investors to gain exposure to Bitcoin without directly holding the cryptocurrency, thereby providing a more accessible and regulated investment vehicle.
This approval triggered a significant demand and investment flow, highlighting the adoption and institutional interest in digital assets.
The success of the Bitcoin ETF has paved the way for further crypto-related financial products, and the market has been eagerly anticipating similar developments for other similar products.
Speculation for Ethereum ETFs was particularly high following positive signals from regulatory authorities. The funds received initial approval in late May, but will not begin trading until the funds' S-1 registration forms are approved.
SEC Chairman Gary Gensler on Thursday He indicated that the approval process for Ethereum ETFs could be completed by the end of the summer.
“Individual donors are still working through the enrollment process, and I think there's some time in the summer,” Gensler said at a Senate hearing Thursday.
TradFi is logged in.
Despite the added mainstream focus that comes with ETFs, Quigley expressed dissatisfaction with the increasing involvement of traditional finance in the crypto space.
“I was happy with crypto without Wall Street,” he said. “Would it be less? Sure. But right now I don't feel like I need to grow the amount of crypto.”
Wall Street has warned that trading crypto products can be risky, especially if institutional investors exit during market downturns.
Despite reservations about Wall Street's involvement, Quigley acknowledges that significant capital inflows are necessary for significant market growth.
“If you want a large amount of capital, yes, you should do things like ETFs,” he admits.
The ETF's boost was partly due to Bitcoin hitting a new high above $73,700 in March, while waiting for April's quadriannual halving event, while BTC hasn't seriously challenged that mark in the months since — and it's down this week. The current price is just under $67,000.
But the price of bitcoin will rise in six months or so after a halving, limiting supply expansion as the effects of the event begin to be felt. Quigley believes historical patterns will continue that way.
“It cannot go up because it is not the right time,” he predicted.
Edited by Andrew Hayward.
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