Last Monday, the news that emerged had taken the entire cryptocurrency world by storm. Within approximately four days, the negative sentiment surrounding the spot Ethereum ETF turned into a process where all applications were approved. Following this, attention shifted to other altcoins in the market. In this context, a co-founder of one of the leading projects in the market made significant statements.
SEC Won’t Stop After Ethereum
Chainlink (LINK) co-founder Sergey Nazarov stated that he does not believe the U.S. Securities and Exchange Commission (SEC) will stop its approval process with Ethereum (ETH).
Last week, the SEC simultaneously approved the 19b-4 form applications of BlackRock, Fidelity, VanEck, Grayscale, Bitwise, Ark, Franklin Templeton, and Invesco Galaxy. Following this event, the first barrier to the operation of spot Ethereum exchange-traded funds (ETFs) in the U.S. was removed.
Nazarov suggested that this approval by the SEC could pave the way for ETF proposals for other cryptocurrencies in the future.
The launch of the ETH ETF proves a fundamental assumption: the Bitcoin ETF will not be the only ETF or traditional financial market instrument through which the average institutional investor and consumer can access cryptocurrencies.
This situation will extend beyond Bitcoin to ETH, but I personally think this is just the beginning. Just as many systems and protocols initially listed Bitcoin and ETH and later listed many other tokens, the trajectory we are on is really this.
What Did the Co-Founder Say About BTC?
Earlier this year, the Chainlink co-founder referred to the launch of spot Bitcoin (BTC) exchange-traded funds as a “turning point” for the industry. He noted that this process could trigger the beginning of a significant capital inflow from global financial circles.
Historically, the way this evolves is that net new buyers provide more adoption and market cycles. I think the question to ask is: ‘Who are the net new buyers in this cycle?’ The net new buyers are the global financial system, which is a very large group of net new buyers.
The Bitcoin ETF is a first offering that allows the global financial system to have ways to put capital into cryptocurrency and Bitcoin within structures they see as comfortable, normal, and feasible in terms of risk.
