Spot Ethereum ETF Approval May Be Good for Bitcoin, Says Michael Saylor

MicroStrategy’s Michael Saylor talked about the impact of spot Ethereum ETF on Bitcoin. He claimed that the approval of an Ethereum spot ETF can be a positive sign for Bitcoin as it would serve as another layer of defense for Bitcoin.

The executive has changed his stance on spot ETH ETF under the presumption that more regulations in the United States are good news for Bitcoin.

He tackled the question of whether Ethereum spot ETF will be good for Bitcoin or not? Speaking on the matter he claimed that it could be better for Bitcoin on the account that it will consolidate the political support for digital assets from the entire industry. He was talking with Podcaster Peter McCormack on 25th May on an episode of What Bitcoin Did.

During the appearance, he claimed that Ethereum serves as another line of defense for Bitcoin. After the news that the Securities and Exchange Commission of the US is set to approve 8 spot Ethereum ETFs on local exchanges by 23rd March.

He repeated his remarks that the event was going to speed up the institutional adoption of Bitcoin. According to his opinion, investors already recognize digital assets as a viable investment option.

The Impact of Spot Ethereum ETF on the Crypto Market

Further elaborating on the topic, he stated that more crypto ETFs will allocate capital in different digital assets. However, he retained that Bitcoin will continue to account for the majority of all capital inflows and maintain its position as the leading cryptocurrency.

He further stated that mainstream crypto investors are going to perceive cryptocurrencies as investment option with 5 to 10 percent capital allocation.

However, Bitcoin will account for around 60 to 70 percent of their total cryptocurrency investments. He further stated the various factors changed his stance on Ethereum spot ETF with a major point being that he previously believed that SEC was not going to approve it.

He claimed that up until two weeks ago, it seemed more probable that Bitcoin was going to be traded as the only asset on Wall Street as a spot ETF.

He noticed that many traditional investors were under the impression that Bitcoin was going to be the only legitimate asset class that was to spread as a sole regulated ETF investment vehicle.

Speaking with journalist from Cointelegraph, he projected that SEC may classify Ethereum as a security and he retained that the agency was going to also put other cryptocurrencies such as Solana, Cardano, ADA, and BNB in the same category.

Michael Saylor’s Stance on Spot Ethereum ETF Changes

Saylor claimed that all the altcoins listed above will not exist in the form of spot ETF. At the same time, he maintained that these tokens may not be accepted at Wall Street as a mainstream institutional investment option or digital asset on account of their classification as probable securities by the Securities and Exchange Commission.

However, his vision on the matter changed when he attended the What Bitcoin Did podcast a week later.

The change was noticed and highlighted by Bitcoin commercial legal expert and analyst Joe Carlasare. He posted on X on 25th May that the next step for Saylor is to purchase ETH and that is going to indicate a direct contrast of his prior stance as per another crypto analyst Ricky Bobbyy.

Approval of Spot Ethereum ETF

Another report indicated that spot Ethereum ETFs may only take a few weeks or months for approval and listing in the United States.

There are no immediate listing expectations as filers are yet to receive a S-1 form from the SEC for registration. However, the SEC has granted a greenlight to the first spot Ethereum ETFs. As per the report, the SEC has approved the 18b-4 forms from BlackRock, Franklin Templeton, Ark21Shares, VanEck, Invesco Galaxy, Bitwise, and Grayscale.

The form slashed staking options for ETH for filers that paved the way for a legal greenlight. A five-member committee inclusive of Gary Gensler granted spot Ethereum ETF approval, under the supervision of the Trading and Markets Division of SEC.

At the same time, the agency started with approval of two ETF applications for spot ETH but it accepted all 10 Bitcoin ETFs that were allowed to trade from the same day of their approval and received an S-1 clearance.