Michael Saylor Says Spot Ethereum ETF Approval Better For Bitcoin

Michael Saylor Says Spot Ethereum ETF Approval Better For Bitcoin

Founder of MicroStrategy, Michael Saylor, has changed his tone regarding the approval of spot Ethereum exchange-traded funds (ETFs).

In a surprising move, the US Securities and Exchange Commission (SEC) granted approval to spot Ether ETFs.

According to Saylor, this approval from the US regulator is good news for Bitcoin, the leading crypto token in the market.

The benefit

He said that it is not just good for Bitcoin, but better because it means that it is more politically powerful and good for the entire crypto industry.

Saylor appeared on the What Bitcoin Did podcast on May 25th and spoke to Peter McCormack about the approval.

He said that the spot Ether ETFs were one more line of defense for Bitcoin. A total of eight spot Ether ETFs have been approved for listing on their respective exchanges.

He added that the approval would speed up institutional adoption. Investors who had previously been wary would not consider crypto as a legit asset class.

In addition, Saylor said that the investors would allocate their capital across different crypto assets. However, Bitcoin would still receive most of the allocated capital because it is the ‘leader’.

The change

Saylor said that once mainstream investors acknowledge crypto as an asset class, they would allocate 5% or 10% to it. But, Bitcoin will receive 60% to 70% of said allocation.

The MicroStrategy founder acknowledged that his opinion regarding spot Ethereum ETFs had changed. He said that he had previously thought that the chances of an SEC approval were very low.

He stated that two weeks earlier, it had seemed that Bitcoin would be the only securitized asset available as a spot ETF on Wall Street.

He explained that he had thought Bitcoin would be the only legit crypto asset. In fact, he had gone as far as predicting that the SEC would classify Ethereum as a security.

In fact, he believed that the regulatory body would also name Solana, BNB, XRP and Cardano as securities as well.

Additional details

Saylor had said on May 3rd that none of these tokens would ever be offered as a spot ETF. He had claimed that they would not be accepted on Wall Street.

He asserted that mainstream institutional investors would not accept these as crypto assets.

The wider crypto community took notice of Saylor’s change in tone on the podcast. Some said that he could end up purchasing Ethereum.

If that happens, it would be a complete turnaround. However, he is not the only one to have changed his tune.

Many others had shared the same opinion, considering that the chances of SEC approval for a spot Ether ETF had been very low.

Therefore, it came as a big surprise for the wider crypto market when the security agency granted approval.

But, it should be noted that the spot Ethereum ETFs are not immediately available for trading and it will take some time for them to be available.