Ethereum ETF Good For Bitcoin: Michael Saylor

Michael Saylor, the chairman of MicroStrategy, has expressed optimism about the U.S. SEC’s approval of Ethereum spot ETF, suggesting that this development could be even more advantageous for Bitcoin.

Saylor shared this perspective on the May 25 episode of the “What Bitcoin Did” podcast. In a conversation with host Peter McCormack, he explored the implications of the SEC’s approval of eight Ethereum spot ETFs on May 23.

Saylor, who had previously been skeptical about the SEC approving Ethereum ETFs, has now changed his position. He views this development as a potential catalyst that could strengthen the entire crypto industry, including Bitcoin. As he put it:

Yes, I believe it’s beneficial for Bitcoin. In fact, it might be even better for Bitcoin because we gain much more political influence when we have the support of the entire crypto industry.

Additionally, the founder of MicroStrategy stated that the approval of Ethereum spot ETFs acts as a further safeguard for Bitcoin. He anticipates this will accelerate institutional adoption, as previously hesitant investors may now see cryptocurrencies as a legitimate asset class.

ETH Sentiment Dips After ETF Approval

However, Saylor anticipates that mainstream investors will start including crypto in their portfolios, predominantly favoring Bitcoin. He estimates that investors might allocate 5% to 10% of their total portfolio to crypto assets, with Bitcoin making up 60% to 70% of that allocation.

Meanwhile, the positive sentiment around Ethereum diminished after the approval of ETFs. According to market tracker Coinglass, ETH traders experienced $80.3 million in long liquidations following the SEC’s approval of Ethereum spot ETF listings on May 23.

Chris Donovan, COO of the NEAR Protocol, expressed optimism about the cryptocurrency industry following the approval of the Ethereum spot ETF. He believes this approval serves as a strong endorsement for the entire crypto sector and could significantly boost demand in the market.

Notably, Saylor previously maintained that Ethereum and other tokens such as BNB, Solana, XRP, and Cardano would not be treated the same as Bitcoin. His shift in perspective has therefore attracted significant attention within the crypto community. Industry figures like Joe Carlasare and Ricky Bobbyy have expressed surprise at Saylor’s dramatic “180-degree” change, speculating whether he might now begin investing in ETH.

Related Reading | The crypto community is abuzz with Saylor’s unexpected positive shift on Ethereum ETFs.

Furthermore, the author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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