Forget a slowdown in crypto ETFs. Wall Street’s got a case of the “innovation munchies,” predicts Tether co-founder William Quigley. Buckle up for a buffet of new products featuring Solana, Cardano, and more crypto flavors.
“Wall Street has an insatiable appetite,” says Quigley. “New financial instruments are like shiny toys for them—perfect for pitching to clients and raking in profits. Remember, if the Bitcoin ETF had flopped, the whole ETF party would have fizzled out.”
He elaborates on Wall Street’s love affair with the “hot new thing.” It’s a conversation starter, a way to reel in customers and push the latest financial creations. But when the hype inevitably fades, Quigley expects ETF providers to simply pivot to the next big trend, leaving a trail of crypto-themed offerings in their wake.
The US Securities and Exchange Commission’s (SEC) green light for spot Bitcoin ETFs earlier this year was a watershed moment, paving the way for crypto to become a mainstream menu item. These ETFs offer investors a taste of the crypto world without the hassle of directly owning the digital assets themselves.
The Effect of the SEC’s Approving Bitcoin ETFs
The approval generated considerable interest and investment inflows, underscoring the growing acceptance and institutional involvement in digital assets. The success of the Bitcoin ETF has opened the door for additional crypto-related financial products, with the market eagerly anticipating similar developments.
There has been especially high anticipation for Ethereum ETFs, particularly following positive indications from regulatory authorities. While the funds received initial approval in late May, they will not begin trading until their S-1 registration forms are approved.
Caution: SEC’s Gary Gensler Points Out the Dangers of ETFs
SEC Chairman Gary Gensler suggested on Thursday that the approval process for Ethereum ETFs could be completed by the end of the summer. Despite the increased mainstream attention brought by ETFs, Quigley voiced dissatisfaction with the growing presence of traditional finance in the crypto space.
He cautioned that Wall Street’s aggressive promotion of crypto products could pose significant risks, particularly if institutional investors withdraw during market downturns. Despite his concerns about Wall Street’s involvement, Quigley acknowledged the necessity of a substantial capital influx for market growth.
“If you want a massive amount of capital, then yes, you have to do things like ETFs,” he admitted.
Although the hype surrounding ETFs was partly responsible for Bitcoin reaching a new all-time high of over $73,700 in March, driven by anticipation for April’s quadrennial halving event, BTC has not come close to that level again in the subsequent months and is currently down this week, trading just under $67,000.
However, Bitcoin’s price typically rises six months or more after the halving, which restricts the increasing supply as the effects of that event begin to take hold. Quigley believes that historical trends will continue to follow this pattern.
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