Will Ethereum ETF be a ‘distraction’ for Bitcoin? Exec says…

  • June’s Ethereum ETF approval speculation shifts focus to Bitcoin’s price dynamics.
  • Pompliano and Saylor anticipate wider crypto adoption from an Ethereum ETF approval. 

As the Ethereum [ETH] spot Exchange-traded funds ETF’s final approval looms, speculation arises: Will it impact Bitcoin [BTC] positively or negatively?

When the SEC approved the rule 19b-4 forms for eight Ether ETF applications, Bitcoin and several other altcoins, including Ethereum, experienced notable declines on the daily charts. 

Market reacts to BlackRock’s S-1 update 

Now, as BlackRock has updated its Form S-1, hinting at the possibility of the ETH ETF getting approved in June, everyone’s attention has shifted to Bitcoin’s price movement.

According to CoinMarketCap, Bitcoin decreased by 0.57% at press time, post BlackRock’s progress towards Ether ETF. Additionally,  Ethereum experienced a 2.70% drop in the past 24 hours.

 Remarking on the impact of ETH ETF approval on Bitcoin, Anthony Pompliano in his recent stream said, 

“I actually don’t think that ether’s ETF is going to be a distraction for Bitcoin.”

Pompliano further went on to predict broader crypto adoption in traditional finance because of ETH ETF approval. He added, 

“We are now going to see more capital flow into the overall crypto ecosystem on Wall Street.” 

Pompliano isn’t alone 

Interestingly, Pompliano isn’t alone in his perspective. MicroStrategy Founder, Michael Saylor, shared similar sentiments in a recent interview where he noted, 

“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.”

This emphasizes Saylor’s view that ETH ETF approval would play a pivotal role in legitimizing the entire crypto asset class.

See also  Depository Trust and Clearing Corporation Says Bitcoin and Crypto ETFs Don’t Qualify As Collateral for Financial Assets

It should be noted that despite his recent openness to ETH ETF approval, Saylor has historically been a staunch Bitcoin maximalist and critic of altcoins.

A win-win situation 

It seems evident that the general sentiment towards an ETH ETF approval remains positive in the crypto community and is seen as a win-win opportunity for the whole industry.

Pompliano put it best when he said, 

“I actually think Bitcoin is going to help Ether and Ether is going to help Bitcoin, and same goes with every other ETF.”

Previous: Checking Ethereum’s reaction to Circle’s $60M USDC burn
Next: Bitcoin: How Mt. Gox’s $9B BTC transfer failed to stir the market

Source link