Saylor: Ethereum ETF Approval Could Benefit Bitcoin

Michael Saylor, the founder of MicroStrategy, recently shared a revised perspective on spot Ether (ETH) exchange-traded funds (ETFs). He now asserts that the United States regulator’s approval not only benefits Ether but also brings advantages for Bitcoin (BTC). Saylor discussed these thoughts during an episode of the “What Bitcoin Did” podcast with Peter McCormack, aired on May 25.

In the podcast, Saylor emphasized that the regulatory nod is positive for Bitcoin. “Is this good for Bitcoin or not? Yeah, 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,” he stated. He added that the approval of these ETFs provides an additional layer of defense for Bitcoin, referring to the SEC’s green light for eight spot Ether ETFs on May 23.

Saylor believes that this development will accelerate the institutional adoption of cryptocurrency. He argued that previously cautious investors will now see digital assets as a legitimate investment category. According to him, investment capital will be distributed among various cryptocurrencies, yet Bitcoin will still attract the lion’s share due to its status as the leader in the crypto market.

Mainstream investors, in Saylor’s view, will start treating cryptocurrencies as a distinct asset class. He predicted that while a portion of their portfolios might go to various crypto assets, Bitcoin would likely constitute 60% to 70% of that allocation. This perspective marks a notable shift from his previous stance, wherein he doubted that ETH ETFs would receive regulatory approval.

Earlier this month, Saylor was under the impression that only Bitcoin would be adopted by Wall Street as a securitized spot ETF. He had predicted that the SEC would classify Ether, along with other cryptocurrencies like BNB, Solana (SOL), XRP, and Cardano (ADA), as securities. This classification, in his view, would prevent these tokens from being wrapped by spot ETFs, thereby making them unappealing to mainstream institutional investors.

The abrupt switch in Saylor’s opinion did not go unnoticed within the digital currency community. Joe Carlasare, a commercial litigator specializing in Bitcoin, remarked on Saylor’s change of stance in a social media post on May 25. Crypto analyst Ricky Bobbyy speculated whether Saylor might go as far as to start investing in Ether, highlighting the dramatic shift in his position.

Saylor’s newfound optimism reflects a broader recognition that the SEC’s approval of these ETFs signifies growing acceptance of cryptocurrency within the financial sector. More importantly, it exemplifies the evolving landscape of crypto investments and the increasing role of regulatory bodies in shaping the future of digital assets.

Despite his previous skepticism, Saylor now sees crypto assets, including Ether, as a reinforcement of Bitcoin’s legitimacy and stability. This change underscores the dynamic nature of the crypto market and the significance of regulatory decisions in influencing investor sentiment and adoption patterns.

Michael Saylor’s revised outlook on spot Ether ETFs reveals an openness to a broader spectrum of cryptocurrencies and highlights the positive ripple effects that regulatory approval can have on the entire digital asset ecosystem. As institutional adoption grows, the interplay between various cryptocurrencies and their regulatory status will continue to shape the market’s future trajectory.